Pre-Calc word problem

Question

you have $10,000 to invest. You are considering safe investments are just search of care of deposits which pay 5.5% interest. the stock market is much riskier but pays 12% interest. if you like to earn about 10% on these investments per year how much should you invest in the safer investment how much in Stocks

Answer 1

Let x = amount in low risk account, then 10000-x is amount invested in high risk account.  To earn 10% of 10000:

 

(.10)(10000) = (.055)x + .12(10000-x)

 

1000 = 1200 -.045x

 

x = 4444.44 in low risk and 5555.56 in high risk