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
To solve this problem, we need to set up a system of equations based on the given information:
- Let represent the amount the woman invests in the 15% bond.
- The total investment amount is $80,000, so the amount she invests in the CD is .
Next, we can calculate the annual interest from each investment:
- The interest from the bond investment is (15% of the amount invested in the bond).
- The interest from the CD investment is (7% of the amount invested in the CD).
The total interest she needs is $3,000 per year. So, we can set up the following equation:
Now, let's solve for :
Distribute the 0.07 on the right-hand side:
Combine the like terms:
Subtract 5,600 from both sides:
Now, solve for :
This negative value suggests there may have been an error in either the interpretation or the input problem. Please check the conditions or clarify so we can resolve any issues
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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
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