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

question 52

Multiple Choice

One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman who has $156,600 to invest would like to have an income of $25,000 per year from her investments. How much should she invest at each rate? ​

• A) She should put $43,848 in the safe investment and $28,188 in the risky investment.​
• B) She should put $19,575 in the safe investment and $35,235 in the risky investment.
• C) She should put $15,660 in the safe investment and $112,752 in the risky investment.
• D) She should put $39,850 in the safe investment and $116,750 in the risky investment.
• E) She should put $51,678 in the safe investment and $43,848 in the risky investment.

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Definitions:

Independent Variables

Variables that are manipulated or controlled in an experiment to test their effect on dependent variables.

Random Assignment

A method used in experiments to divide participants into groups in a way that each has an equal chance of being placed in any group, minimizing biases.

Generalizable

The extent to which findings from a study can be applied or extended to larger populations beyond the sample studied.

Client Variables

Aspects or characteristics of clients that might influence the outcome of a service, program, or study, such as their background or personal preferences.