2.3 Exercise 52

For exercises 17 and 18, use this scenario: A retired woman has $50,000 to invest but needs to make $6,000 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%.

Raúl has $20,000 to invest. His intent is to earn 11% interest on his investment. He can invest part of his money at 8% interest and part at 12% interest. How much does Raúl need to invest in each option to make get a total 11% return on his $20,000?