A Total of $32,000 Is Invested in Two Municipal Bonds

question 27

Multiple Choice

A total of $32,000 is invested in two municipal bonds that pay 5.75% and 6.25% simple interest.The investor wants an annual interest income of $1,900 from the investments.What amount should be invested in the 5.75% bond? ​

• A)$31,800
• B)$20,000
• C)$32,000
• D)$20,300
• E)$20,100

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Definitions:

Partnership

A legal arrangement where two or more parties agree to do business together and share profits and losses.

Joint Interest

A legal or financial interest shared between two or more parties in a particular asset, operation, or venture, often involving shared responsibilities and benefits.

Campground

A place designed for camping, where individuals can set up tents, camper trailers, or other temporary lodging facilities, often equipped with amenities like restrooms and picnic areas.

Ordinary Course

Actions that are considered normal or customary within the daily operations of a business or individual's affairs.