After 2 years, Betsy (see Problem 19) finds that she will now require $7000 per year. Assuming
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After 2 years, Betsy (see Problem 19) finds that she will now require $7000 per year. Assuming that the remaining information is the same, how should the money be reinvested?
Data in Problem 19
Betsy, a recent retiree, requires $6000 per year in extra income. She has $50,000 to invest and can invest in B-rated bonds paying 15% per year or in a certificate of deposit (CD) paying 7% per year. How much money should Betsy invest in each to realize exactly $6000 in interest per year?
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