Solve the Problem. -Linda Invests $25,000 for One Year. Part Is Invested at Is

question 102

Multiple Choice

Solve the problem.
-Linda invests $25,000 for one year. Part is invested at 5%, another part at 6%, and the rest at 8%. The total income from all 3 investments is $1600. The income from the 5% and 6% investments is the same as the income
From the 8% investment. Find the amount invested at each rate.

• A) $10,000 at 5%, $10,000 at 6%, $5000 at 8%
• B) $10,000 at 5%, $5000 at 6%, $10,000 at 8%
• C) $8000 at 5%, $10,000 at 6%, $7000 at 8%
• D) $5000 at 5%, $10,000 at 6%, $10,000 at 8%

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Definitions:

Preconceptions

Ideas or opinions formed before having the evidence for their truth or usefulness, often acting as biases or assumptions.

Framing

In social psychology, the way information is presented to the audience, which influences the choices people make by highlighting certain aspects and downplaying others.

Belief Perseverance

The tendency to maintain a belief even after the evidence supporting it has been discredited or refuted.

Overconfidence

The phenomenon where an individual's belief in their own abilities exceeds the accuracy of those abilities.