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Solve the Problem -Ms. Adams Received a Bonus Check for $12,000. She Decided

question 124

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Solve the problem
-Ms. Adams received a bonus check for $12,000. She decided to divide the money among three different investments. With some of the money, she purchased a municipal bond paying 5.5% simple interest. She invested twice the amount she paid for the municipal bond in a certificate of deposit paying 4.3% simple interest. Ms. Adams placed the balance of the money in a money market account paying 3.3% simple interest. If Ms. Adams' total interest for one year was $480, how much was placed in each account?

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Definitions:

ROE

Return on Equity, a profitability ratio that measures the amount of net income returned as a percentage of shareholders' equity.

Plowback Ratio

The proportion of earnings that a company reinvests into its business rather than distributing to shareholders as dividends, indicating its growth strategy.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid, often reinvested in the business for growth.