00:01
So a retired woman has $50 ,000 total to invest and she needs to earn $6 ,000 per year to cover her living expenses.
00:14
She's going to invest x dollars in a 15 % cd.
00:21
So the interest earned on that is 0 .15 times the amount she invests in that bond.
00:31
So x is the dollars that she invests in the bond, 15 % bond.
00:46
And then she's also going to invest the remainder, so we'll call that y, into a cd that pays 7%.
01:00
So the dollars that she invests in the cd earn 0 .7.
01:07
So the total earnings on the cd is 0 .07 y.
01:13
And y is the dollars invested in 7 % cd.
01:24
And this should be dollars, not number.
01:28
Okay, so we have two equations here, two unknowns.
01:36
If she invests x dollars into the 15 % bond, then y is equal to $50 ,000 minus x.
01:50
This is the amount invested in the cd.
02:04
So that is part of your answer here...