Solve the Problem $\$ 178,000$ Trust Is to Be Invested in Bonds Paying

question 32

Multiple Choice

Solve the problem.
-A $\$ 178,000$ trust is to be invested in bonds paying $7 \%$ , CDs paying $6 \%$ , and mortgages paying $9 \%$ . The bond and CD investment together must equal the mortgage investment. To earn a $\$ 13,750$ annual income from the investments, how much should the bank invest in bonds?

• A) \(\$ 40,000\)
• B) \(\$ 89,000\)
• C) \(\$ 38,000\)
• D) \(\$ 49,000\)

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Definitions:

Double Covalent Bonds

Chemical bonds formed by the sharing of two pairs of electrons between two atoms, creating a strong link in the molecule structure.

Fatty Acid

Organic compounds consisting of a hydrocarbon chain and a terminal carboxyl group, important components of lipids in the body such as fats and oils, playing key roles in energy storage and cell structure.

Carbon Chain

A series of carbon atoms linked together, which can be straight, branched, or arranged in rings, forming the backbone of organic molecules.

Triglycerides

A type of fat (lipid) found in your blood, used by the body for energy but high levels can increase the risk of heart disease.