Question: A recently retired couple needs $12,000 per year to supplement their Social Security. They have $150,000 to invest to obtain this income. They have decided

A recently retired couple needs $12,000 per year to supplement their Social Security. They have $150,000 to invest to obtain this income. They have decided on two investment options:AA bonds yielding 10% per annum and a Bank Certificate yielding 5%.

(a) How much should be invested in each to realize exactly $12,000?

(b) If, after 2 years, the couple requires $14,000 per year in income, how should they reallocate their investment to achieve the new amount?

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