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%

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Definitions:

Graph

A visual representation of data, relationships, or functions, often using lines, bars, or points to simplify and convey complex information.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various prices.

Total Revenues

The sum of all income generated by a company through its business activities, typically from the sale of goods and services before any costs or expenses are deducted.

Price-Inelastic

Describes a situation where the demand for a good or service is relatively unresponsive to changes in its price.