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Nancy Just Inherited $83,000

Question 19

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Nancy just inherited $83,000. She decides to diversify her investment by putting the money into three different accounts: tax-free bonds which pay 5% annual interest, a certificate of deposit which pays 7% annual interest, and a mutual stock fund which has an average annual rate of return of 12%. The amount she invests in the certificate of deposit is double the amount she invests in bonds. Her goal for total return per year from these three investments is $7720. How much should Nancy put into each account?


A) Nancy just inherited $83,000. She decides to diversify her investment by putting the money into three different accounts: tax-free bonds which pay 5% annual interest, a certificate of deposit which pays 7% annual interest, and a mutual stock fund which has an average annual rate of return of 12%. The amount she invests in the certificate of deposit is double the amount she invests in bonds. Her goal for total return per year from these three investments is $7720. How much should Nancy put into each account? A) B) C) D) E) none of these
B) Nancy just inherited $83,000. She decides to diversify her investment by putting the money into three different accounts: tax-free bonds which pay 5% annual interest, a certificate of deposit which pays 7% annual interest, and a mutual stock fund which has an average annual rate of return of 12%. The amount she invests in the certificate of deposit is double the amount she invests in bonds. Her goal for total return per year from these three investments is $7720. How much should Nancy put into each account? A) B) C) D) E) none of these
C) Nancy just inherited $83,000. She decides to diversify her investment by putting the money into three different accounts: tax-free bonds which pay 5% annual interest, a certificate of deposit which pays 7% annual interest, and a mutual stock fund which has an average annual rate of return of 12%. The amount she invests in the certificate of deposit is double the amount she invests in bonds. Her goal for total return per year from these three investments is $7720. How much should Nancy put into each account? A) B) C) D) E) none of these
D) Nancy just inherited $83,000. She decides to diversify her investment by putting the money into three different accounts: tax-free bonds which pay 5% annual interest, a certificate of deposit which pays 7% annual interest, and a mutual stock fund which has an average annual rate of return of 12%. The amount she invests in the certificate of deposit is double the amount she invests in bonds. Her goal for total return per year from these three investments is $7720. How much should Nancy put into each account? A) B) C) D) E) none of these
E) none of these

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