Joel S.

asked • 09/29/19

College algebra problem. Stuck.

Santos just retired, and has $870,000 to invest. A very safe Certificate of Deposit (CD) account pays 1%, while a riskier bond fund pays 5.5% in interest. Santos figures he needs $22,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk?

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