One Safe Investment Pays 10% Per Year, and a More

question 113

Multiple Choice

One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman who has $145,400 to invest would like to have an income of $20,000 per year from her investments. How much should she invest at each rate? ​

• A)She should put $40,712 in the safe investment and $26,172 in the risky investment.​
• B)She should put $18,175 in the safe investment and $32,715 in the risky investment.
• C)She should put $14,540 in the safe investment and $104,688 in the risky investment.
• D)She should put $77,150 in the safe investment and $68,250 in the risky investment.
• E)She should put $47,982 in the safe investment and $40,712 in the risky investment.

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