I've tried many different combinations of answers but I am unable to get the correct answer (this is a question in an online homework). I would really appreciate it if someone could tell me where I went wrong!
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Question:
A student inherits $147500 and decides to invest half. The student has two investments to choose from; the first is a low risk investment that pays an average of 7% simple interest annually, the second has much more risk but averages 10% simple interest per year. If the student hopes to earn $5172.5 a year in interest, how much should be deposited in each investment?
My work:
Let L be the amount of low risk investment, (73750-L) be the amount of high risk investment.
0.07L + (73750-L)(0.1) = 5172.5
L = 73416.67
Amount of high risk investment = 73750- 73416.67=333.33
Amount of low risk investment = 73416.67
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Thanks!
