A retired woman has $40,000 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%.
Set up and solve the equation for how much the woman should invest
in each option to sustain exactly a $3,000 annual
return.
bond
$
CD
$