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.

Question

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.

Quizplus · Accepted Answer

Let x represent the amount invested in the safe investment, then the amount invested in the risky investment would be 145400 - x.

We can set up the following equation using the given information:

0.1x + 0.18(145400 - x) = 20000

Solving for x, we get:

x = 77150

So the amount invested in the safe investment is $77,150 and the amount invested in the risky investment is 145400 - 77150 = $68,250.

Therefore, the best choice is D.

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