Solve the problem.
-Don James wants to invest $63,000 to earn $1288 per year. He can invest in B-rated bonds paying 2.6% per year or in a Certificate of Deposit (CD) paying 1.6% per year. How much money should be
Invested in each to realize exactly $1288 in interest per year?
A) $28,000 in B-rated bonds and $35,000 in a CD
B) $35,000 in B-rated bonds and $28,000 in a CD
C) $34,000 in B-rated bonds and $29,000 in a CD
D) $29,000 in B-rated bonds and $34,000 in a CD

Question

Quizplus · Accepted Answer

To solve, set up the equation: 0.026x + 0.016(63,000 - x) = 1,288. Solving gives x = $28,000 for B-rated bonds, and the rest, $35,000, for the CD.

Solve the Problem. -Don James Wants to Invest $63,000 to Earn $1288 Per