Question

One safe investment pays 10% per year, and a more risky investment pays 18% per year. A woman who has $139,600 to invest would like to have an income of $18,920 per year from her investments. How much should she invest at each rate?

Answer 1

Answer:

@ 10% per year = need an investment of 189,200 to get 18,920 per year income

@ 18% per year = need an investment of 105,111.11 to get 18,920 per year income