Problem

Investment One safe investment pays 8% per year, and a more risky investment pays 12% per...

Investment One safe investment pays 8% per year, and a more risky investment pays 12% per year.

a. How much must be invested in each account if an investor of $100,000 would like a return of $9000 per year?


b. Why might the investor use two accounts rather than put all the money in the 12% investment?

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