Solve the Problem. -A Retired Couple Has $140,000 to Invest to Obtain Annual

question 10

Multiple Choice

Solve the problem.
-A retired couple has $140,000 to invest to obtain annual income. They want some of it invested in safe Certificates of Deposit yielding 5%. The rest they want to invest in AA bonds yielding 12% per year. How much
Should they invest in each to realize exactly $13,300 per year?

• A) $90,000 at 5% and $50,000 at 12%
• B) $80,000 at 5% and $60,000 at 12%
• C) $90,000 at 12% and $50,000 at 5%
• D) $100,000 at 12% and $40,000 at 5%