Solve the Problem. -You Inherit $70,000 from a Very Wealthy Grandparent, with the Grandparent

question 165

Multiple Choice

Solve the problem.
-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%

---

Definitions:

Generativity

A concern for establishing and guiding the next generation, typically developed during middle adulthood.

Stagnation

A state or period in which there is no growth or development, often used to describe psychological or social situations where progress is halted.

Latency Stage

The fourth stage in Freud's psychosexual stages, occurring from about age 6 to puberty, characterized by the sublimation of sexual impulses into socially acceptable activities.

Psychosocial Development

A theory by Erik Erikson that outlines eight stages of psychological development that individuals go through from infancy to adulthood, each characterized by a specific challenge.