Math Problem Statement

Betsy, a recent​ retiree, requires ​$6 comma 000 per year in extra income. She has ​$50 comma 000 to invest and can invest in​ B-rated bonds paying 17​% per year or in a certificate of deposit​ (CD) paying 7​% per year. How much money should be invested in each to realize exactly ​$6 comma 000 in interest per​ year?

Solution

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Math Problem Analysis

Mathematical Concepts

Algebra
Systems of Linear Equations

Formulas

Investment Total Equation: x + y = 50,000
Interest Total Equation: 0.17x + 0.07y = 6,000

Theorems

Solving Systems of Equations using Substitution

Suitable Grade Level

Grades 9-12