One safe investment pays 10% per year, and a more risky investment pays 14% per year. a. How much must be invested in each account if an investor of $95,000 would like a return of $10,420 per year? b. Why might the investor use two accounts rather than put all the money in the 14% investment?

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.1: Exponential Functions
Problem 53E: Interest Ron Hampton needs to choose between two investments: One pays 6% compounded annually, and...
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One safe investment pays 10% per year, and a more risky investment pays 14% per year.
a. How much must be invested in each account if an investor of $95,000 would like a return of $10,420 per year?
b. Why might the investor use two accounts rather than put all the money in the 14% investment?
a. $ is invested in the 10% account.
Transcribed Image Text:One safe investment pays 10% per year, and a more risky investment pays 14% per year. a. How much must be invested in each account if an investor of $95,000 would like a return of $10,420 per year? b. Why might the investor use two accounts rather than put all the money in the 14% investment? a. $ is invested in the 10% account.
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