Garrett's grandmother died and left him $100,000. He will invest the funds, but wants to make enough money to pay for his monthly car payment of $300/month. One suggestion might be an income stock that pays a 4% dividend.

Question

Quizplus · Accepted Answer

If Garrett invests the entire $100,000 into an income stock that pays a 4% dividend, he would earn $4,000 annually in dividend payments. This equates to $333.33 per month, which is more than enough to cover his car payment of $300 per month.

Garrett's Grandmother Died and Left Him $100,000