After 2 years, Betsy (see Problem 19 ) finds that she will now require $2700 per year.
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After 2 years, Betsy (see Problem 19 ) finds that she will now require $2700 per year. Assuming that the remaining information is the same, how should the money be reinvested?
Data from problem 19
Betsy, a recent retiree, requires $2100 per year in extra income. She has $50,000 to invest and can invest in B-rated bonds paying 6% per year or in a certificate of deposit (CD) paying 1.2% per year. How much money should Betsy invest in each to realize exactly $2100 in interest per year.
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Related Book For
Precalculus Concepts Through Functions A Unit Circle Approach To Trigonometry
ISBN: 9780137945139
5th Edition
Authors: Michael Sullivan
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