2) After 2 years, Betsy finds she now will require $7,000 per year. The remaining info is the same. How should the money be reinvested?
Same info: 1) Betsy requires $6000 per year in extra income. She has $50,000 to invest and can invest in bonds paying 15% per year or in CD paying 7% per year.
Should I use the same equation that I used for 1) and just change the 6000 interest to 7000? and re find the money that should be invested in CD and bonds?
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The question is poorly worded. But that is the way I got the answer.
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