Math Problem Statement

A retired woman has $80,000 to invest but needs to make $3,000 a year from the interest to meet certain living expenses. One bond investment pays 15% annual interest. The rest of it she wants to put in a CD that pays 7%.

If we let x be the amount the woman invests in the 15% bond, how much in dollars will she be able to invest in the CD?

Solution

Ask a new question for Free

By Image

Drop file here or Click Here to upload

Math Problem Analysis

Mathematical Concepts

Algebra
Linear Equations

Formulas

Total Interest = Interest from Bond + Interest from CD
0.15x + 0.07(80,000 - x) = 3,000

Theorems

-

Suitable Grade Level

Grades 9-11