Question 1151971

{{{x}}}=the safer investment
{{{100000-x}}}=riskier

{{{0.07x+0.14(100000-x)=9100}}}

{{{0.07x+14000-0.14x=9100}}}

{{{-0.07x=9100-14000}}}

{{{-0.07x=-4900}}}

{{{x=-4900/-0.07}}}

{{{x=70000}}}=>safe investment


{{{100000-x=100000-70000=30000 }}} =>riskier investment


b. Why might the investor use two accounts rather than put all the money in the {{{14}}}​% ​investment?

A risky investment is one that is more volatile than a safe one, on both ends of the spectrum. Basically, if these go right, you can make huge returns on your initial investment. On the other hand, if the investment tanks, you could be left with nothing. 


a. ${{{70000}}} is invested in the {{{7}}}% account.


P.S.
Your investments are “safer” when you get a financial education, actively invest your money in investments you understand, get the majority of the returns, and become your own financial adviser.