Paula Split an Inheritance Between Two Investments, One a Certificate

question 95

Multiple Choice

Paula split an inheritance between two investments, one a certificate of deposit paying 7% annual interest, and the other a promising biotech company offering an annual return of 10%. She invested twice as much in the 10% investment as she did in the 7% investment. If her combined annual income from the two investments was $2,700, how much did she inherit?

• A) $22000
• B) $32000
• C) $20000
• D) $30000
• E) $31000

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Definitions:

Check-Collection

The process of receiving and processing checks to obtain payment from the banking institutions on which they are drawn.

Disclaimed

Refused to acknowledge or accept something, especially legal claims or responsibility.

Warranty Liability

The legal obligation of a seller or manufacturer to repair, replace, or compensate for a defective product within a specified time period.

Negotiation

A process of discussion aimed at reaching an agreement between two or more parties.