Originally Posted by

**harpazo** My biggest problem continues to be setting up the right equation based on information given in a word problem.

Betsy, a recent retiree, requires 6000 dollars per year in extra income. She has 50,000 dollars to invest and can invest in B-rated bonds paying 15 percent per year or in a certificate of deposit paying 7 percent per year. How much money should be invested in each to realize exactly 6000 dollars in interest per year?

Let x = money to be invested in each

(50,000-x)(0.15) + (50,000)(0.07) = 6000

Is this the correct set up?