Algebra homework help needed

Algebra
Tutor: None Selected Time limit: 1 Day

Betsy, a recent retiree, 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 deposit (CD) paying 7% per year. How much money should be invested in each to realize exactly 6,000 in interest per year?

The amount of money invested at 15%=

The amount of money invested at 7%=

I=Prt

Oct 28th, 2015

Thank you for the opportunity to help you with your question!

Let he invest x amount for the rate of 15 percent ,then he invest (70000-x) for 7 percent

Then S.i=ptr/100

             =xx15x1/100

Also interest for 70000-x is

S.i=(70000-x)x7x1/100

Now total interest is 6000

So

Xx15/100+(70000_x)x7x/100=6000

Simplifying....

15x+70000x7-7x=6000x100

8x=600000-490000

8x=110000

X=110000/8=13750dollars

Hence second part is 70000-13750=56250 dollars




Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 28th, 2015

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