Mr and Mrs

Essay

Mr. and Mrs. Garcia have a total of $300,000 to be invested in stocks, bonds, and a money market account. The stocks have a rate of return of 10%/year, while the bonds and the money market account pay 6% and 2%/year, respectively. They have stipulated that the amount invested in stocks should be equal to the sum of the amount invested in bonds and 3 times the amount invested in the money market account. How should the Garcias allocate their resources if they require an annual income of $24,000 from their investments?