A $128,000 Trust Is to Be Invested in Bonds Paying

question 98

Multiple Choice

A $128,000 trust is to be invested in bonds paying 9%, CDs paying 6%, and mortgages paying 10%. The sum of the bond and CD investment must equal the mortgage investment. To earn an $10,900 annual income from the
Investments, how much should the bank invest in bonds?

• A) $42,000
• B) $64,000
• C) $20,000
• D) $22,000

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Definitions:

Balanced Scorecard

A strategic planning and management system used by organizations to translate mission and vision statements into operational objectives and performance metrics across four perspectives: financial, customer, internal processes, and learning and growth.

Incentive Plan

A business strategy designed to motivate and reward employees in order to achieve higher levels of performance.

Organization's Goals

Objectives set by a company or an organization to guide its operations, steer its overall direction, and measure its performance over time.

Employee Empowerment

The practice of giving employees the autonomy, resources, and capabilities to make decisions and contribute to the company's success.