Solve the problem.
-A retired couple has $170,000 to invest to obtain annual income. They want some of it invested in safe Certificates of Deposit yielding 5%. The rest they want to invest in AA bonds yielding 11% per year. How much should they invest in each to realize exactly $15,700 per year?
A) $120,000 at 11% and $50,000 at 5%
B) $110,000 at 5% and $60,000 at 11%
C) $120,000 at 5% and $50,000 at 11%
D) $130,000 at 11% and $40,000 at 5%

Question

Quizplus · Accepted Answer

Let x be the amount invested in CDs at 5% and y be the amount invested in AA bonds at 11%. The total investment is $170,000, so x + y = $170,000. They want to earn $15,700 annually, so 0.05x + 0.11y = $15,700. Solving these equations simultaneously, we find that x = $50,000 and y = $120,000, which corresponds to choice A.

Solve the Problem. -A Retired Couple Has $170,000 to Invest to Obtain Annual