Solve the problem.
-Don James wants to invest $59,000 to earn $6170 per year. He can invest in B-rated bonds paying 13% per year or in a Certificate of Deposit (CD)paying 7% per year. How much money should be invested in each to realize exactly $6170 in interest per year?
A)$25,000 in B-rated bonds and $34,000 in a CD
B)$35,000 in B-rated bonds and $24,000 in a CD
C)$24,000 in B-rated bonds and $35,000 in a CD
D)$34,000 in B-rated bonds and $25,000 in a CD

Question

Quizplus · Accepted Answer

To earn $6170, let x be the amount in B-rated bonds at 13%, and y be the amount in CD at 7%. The equations are: x + y = $59,000 and 0.13x + 0.07y = $6170. Solving these gives x = $34,000 and y = $25,000.

Solve the Problem. -Don James Wants to Invest $59,000 to Earn $6170 Per