Casey is retiring and has $2.5 million to invest in stocks and bonds. Casey estimates that the stocks will have an average return of 9.5% and the bonds will pay 7% simple interest. Casey wants $210,000 per year to cover his living and travel expenses each year.
1-What variables are appropriate?
a- S (amount in bonds [in 1000s]) and B (interest rate)
b- S (amount in stocks [in 1000s]) and B (amount in bonds [in 1000s])
c- S (average return) and B (amount in bonds [in 1000s])
d- S (amount in stocks [in 1000s]) and B (average return)
e- S (average return) and B (interest rate)
2- Write a system of inequalities to show the possible amounts he could invest in each account.
a-returns =??
b-investment+ ??
