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:

GEO

Geographical information, often used in the context of mapping, location services, and geographic analysis.

Stationary

Items such as paper, pens, and office supplies that are designed for writing or office work and do not move.

LEO

Low Earth Orbit, referring to a satellite system orbiting relatively close to Earth, often used for telecommunications and satellite images.

MEO

Medium Earth Orbit, referring to satellites that orbit the Earth at altitudes typically ranging from 2,000 to 35,786 kilometers, used for communication and navigation.