Problema Solution

betsy requires$6,000 per year in extra income. she has $70,000 to invest and can invest in B rated bonds paying 15% per year or in a certificate of deposit paying 7% per year. How much money should be invested in each to realize exactly $6,000 in interest per year?

Answer provided by our tutors

2 equations become

x + y =70000

0.15x + 0.07y = 6000

 

Solving we get

x (at 15%) = $13750

y (at 7%) = $56250