​Betsy, a recent​ retiree, requires ​$5,000 per year in extra income. She has ​$70,000 to invest and can invest in​ B-rated bonds paying 15​% per year or in a certificate of deposit​ (CD) paying 5​% per year. How much money should be invested in each to realize exactly ​$5,000 in interest per​ year?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.57TI: What is the total effect on the economy of a government tax rebate of $1,000 to each household in...
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​Betsy, a recent​ retiree, requires ​$5,000 per year in extra income. She has ​$70,000 to invest and can invest in​ B-rated bonds paying 15​% per year or in a certificate of deposit​ (CD) paying 5​% per year. How much money should be invested in each to realize exactly ​$5,000 in interest per​ year?

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