Answer:
Investment in low risk=$150,000
Investment in medium risk =$30,000
Investment in high risk=$120,000
Explanation:
✓We can denote the investment in high risk as $x
✓ We can denote the investment medium risk as $y
✓We can denote the investment in low risk as($x + $y)
The summation of the investment = x + y +( x + y )= $300,000
If we add the like-terms together we have,
2x + 2y = $300,000
If we divide the both sides by 2, we have
x+y = 150,000
If we make "x" as subject of the formula, we have
x =150,000 -y •••••••••••eqn(**)
Total return on investments is
0.15x +0.10y +0 .06(x+y) = $30,000••••••••••••••••••••••••••••eqn(#)
Substitute for x from eqn(**) into equation (#)
0.15(150,000 -y) + 0.10y + 0.06(150,000-y +y) = 30,000
22500-0.15y+0.10y+9000= 30,000
0.05y=1500
y=1500/0.05
y=30,000
Recall, x =150,000 -y
Then
x = 150,000 - 30,000 = 120,000
y=30,000
x=120,000
Investment in low risk = x + y
= 30,000+120,000= 150,000
Hence, the investment in high risk
is $120,000, the investment medium risk is $30,000 and the investment in low risk is $ 150,000.
