One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman who has $146,400 to invest would like to have an income of $21,000 per year from her investments. How much should she invest at in the 18% rate fund?

Question

One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman who has $146,400 to invest would like to have an income of $21,000 per year from her investments. How much should she invest at in the 18% rate fund? ​

Quizplus · Accepted Answer

Let x be the amount invested in the risky investment, then the amount invested in the safe investment is (146400 - x).
The income from the risky investment is 0.18x and the income from the safe investment is 0.1(146400 - x).
The total income needs to be $21,000 per year, so we can set up the equation:
0.18x + 0.1(146400 - x) = 21000
Solving for x:
0.18x + 14640 - 0.1x = 21000
0.08x = 6360
x = 79500
Therefore, the woman should invest $79,500 in the 18% rate fund.

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