Problema Solution
Maria has recently retired and requested an extra $509.00 per year in income. She has $ 5900 to invest in an A-rated bond that pays 11 % per annum or a B-rated bond paying 6 % per annum. How much should be placed in each investment in order for Maria to achieve her goal?
Answer provided by our tutors
Let
x = the amount Maria invests in the 11% bond
y = the amount Maria invests in the 6% bond
We can write:
0.11x+0.06y=509
x+y=5900
........
click here to see the system of equations solved for x and y
........
x = $3,100
y = $2,800
Maria should invest $3,100 in A-rated bonds and $2,800 in B-rated bonds.