One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman who has$139,200 to invest would like to have an income of $18,960 per year from her investments. How much shouldshe invest at each rate?

The simple interest is calculated by multiplying interest rate by principal amount for a certain…

Answered: One safe investment pays 10% per year,…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman who has $139,200 to invest would like to have an income of $18,960 per year from her investments. How much should she invest at each rate?