Solve the problem.
-A retired couple has $160,000 to invest to obtain annual income. They want some of it invested in safe Certificates of Deposit yielding 6%. The rest they want to invest in AA bonds yielding 11% per year. How much
Should they invest in each to realize exactly $15,600 per year?
A) $130,000 at 11% and $30,000 at 6%
B) $120,000 at 11% and $40,000 at 6%
C) $120,000 at 6% and $40,000 at 11%
D) $110,000 at 6% and $50,000 at 11%

Question

Quizplus · Accepted Answer

Let x be the amount invested in AA bonds at 11%, and y be the amount invested in CDs at 6%. The total investment is $160,000, so x + y = $160,000. They want to earn $15,600 annually, so 0.11x + 0.06y = $15,600. Solving these equations simultaneously gives x = $120,000 and y = $40,000.

Solve the Problem. -A Retired Couple Has $160,000 to Invest to Obtain Annual