Use the Five-Step Strategy for Solving Word Problems to Find $\$ 70,000$

question 26

Multiple Choice

Use the five-step strategy for solving word problems to find the number or numbers described in the following
exercise.
-You inherit $\$ 70,000$ from a very wealthy grandparent, with the stipulation that for the first year, the money must be invested in two stocks paying $4 \%$ and $10 \%$ annual interest, respectively. How much should be invested at each rate if the total interest earned for the year is to be $\$ 4000$ ?

• A) \(\$ 50,000\) invested at \(4 \%\); \(\$ 20,000\) invested at \(10 \%\)
• B) \(\$ 20,000\) invested at \(4 \%\); \(\$ 50,000\) invested at \(10 \%\)
• C) \(\$ 40,000\) invested at \(4 \%\); \(\$ 30,000\) invested at \(10 \%\)
• D) \(\$ 30,000\) invested at \(4 \%\) : \(\$ 40,000\) invested at \(10 \%\)

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Definitions:

Economic Power

The capacity of an entity, such as a company or country, to influence economic outcomes within its environment for its own benefit.

Political Power

The ability or capacity of a person or group to influence or control the actions and policies of a government or organization.

Public Utilities

Companies that provide essential services to the public, such as water, electricity, gas, and telecommunications, often regulated by the government.

ATC Curve

The Average Total Cost curve, it represents the per-unit total cost of production (fixed plus variable costs divided by total output) at various levels of output.