A retired woman has $80,000 to invest but needs to make $6,000 a year from the interest to meet certain living expenses. One bond investment pays 15% annual interest. The rest of it she wants to put in a CD that pays 7%.

If we let x be the amount the woman invests in the 15% bond, how much in dollars will she be able to invest in the CD?

Question

Michael Landry

Mathematics

17 June, 20:41

A retired woman has $80,000 to invest but needs to make $6,000 a year from the interest to meet certain living expenses. One bond investment pays 15% annual interest. The rest of it she wants to put in a CD that pays 7%.

If we let x be the amount the woman invests in the 15% bond, how much in dollars will she be able to invest in the CD?

+2

Answers (1)

Know the Answer?

Demarcus Schaefer · Answer 1

The woman will have to invest 40000 at. 15 to earn 6000 a year in interest. that leaves her 40000 to invest in a cd.

I set this up ...

6000/x=15/100

cross multiply giving you 600000=15x

divide 600000 by 15 for x.

40000

40000 from 80000 leaves 40000 for investing