A Trust Account Manager Has $220,000 to Be Invested

question 193

Multiple Choice

A trust account manager has $220,000 to be invested. The investment choices have current yields of 8%, 7%, and 10%. Suppose that the investment goal is to earn interest of $16,300, and risk factors make it prudent to invest some money in all three investments. What is the maximum amount that will be invested at 7%, and in this case how much will be invested at the other rates? ​

• A)$220,000 at 7%, $0 at 8%, $0 at 10%
• B)$180,000 at 7%, $10,000 at 8%, $30,000 at 10%
• C)$190,000 at 7%, $0 at 8%, $30,000 at 10%
• D)$30,000 at 7%, $0 at 8%, $190,000 at 10%
• E)$190,000 at 7%, $20,000 at 8%, $10,000 at 10%

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Definitions:

Group Consensus

A general agreement reached by a group as a whole, where most members support the decision even if it's not their first choice.

Unanimity

Complete agreement among all members or participants, often used in decision-making processes to ensure consensus.

Lack Of Response

A situation or behavior characterized by no reaction or feedback in response to communication, actions, or stimuli.

Proxemics

The study of how humans use space in communication and how different distances between people affect behavior and social interaction.