Problema Solution
Sophia has recently retired and requires and extra $5400 per year in income. she has $90,000 to invest and can invest in either an Aaa-rated bond that pays 5% per annum or a B-rated bond paying 9% per annum. how much should sophia place in each investment in order to achieve her goal?
Answer provided by our tutors
Let 'x' stand for the amount that Sophia invests in the 5% bond and 'y' stand for the amount that she invests in the 9% bond. We can write:
.05x+.09y=5400
x+y=90000
Using Algebrator to solve for 'x' and 'y', we get:
x=$67500
y=$22500