Ocean Beach Financial Planning offers three types of investments: low-risk, medium-risk, and high-risk. A customer decides to invest $6600 and is given three options for investing in the three funds. Determine the interest rate percentage for the low-risk, l, medium-risk, m, and high-risk, h, investments based on the interest earned for each option in the first year.
$300l + $750m + $5550h = $429.00
$500l + $1150m + $4950h = $409.00
$350l + $1200m + $5050h = $417.00
A) (2%, 6%, 8%)
B) (0%, 4%, 6%)
C) (1%, 5%, 7%)
D) (7%, 5%, 1%)

Question

Quizplus · Accepted Answer

The system of equations can be solved to find the interest rates:  1. $300l + $750m + $5550h = $429.00  2. $500l + $1150m + $4950h = $409.00  3. $350l + $1200m + $5050h = $417.00  Solving these equations gives l = 1%, m = 5%, h = 7%.

Ocean Beach Financial Planning Offers Three Types of Investments: Low-Risk