Question

Betsy a recent retiree require $6000 per year in extra income she has a $50,000 to invest and can invest in B rated bonds paying 17% per year or in a certificate of deposit paying 7% per year how much money should be invested in each to realize exactly $6000 in interest per year

Answer 1

She should invest 50% of the income in the B rated bonds and the other 50% in the certificate of deposit to realize $6,000 of interest income per year.