Solve the Problem. -You Inherit $10,000 with the Stipulation That for the First

question 41

Multiple Choice

Solve the problem.
-You inherit $10,000 with the stipulation that for the first year the money must be invested in two stocks paying 6% and 11% annual interest, respectively. How much should be invested at each rate if the total interest earned For the year is to be $700?

• A)$2000 invested at 6%; $8000 invested at 11%
• B)$9000 invested at 6%; $1000 invested at 11%
• C)$8000 invested at 6%; $2000 invested at 11%
• D)$7000 invested at 6%; $3000 invested at 11%

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Definitions:

Increasing Cost Industry

An increasing cost industry is one in which production costs rise as the industry's output increases, often due to scarce resources or increasing input prices.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit.

Firm

An organization or business entity engaged in commercial, industrial, or professional activities.

Quantity

The amount or number of a material or immaterial entity.