Mr. and Mrs. Garcia have a total of $200,000 to be invested in stocks, bonds, and a money market account. The stocks have a rate of return of 11%/year, while the bonds and the money market account pay 9% and 3%/year, respectively. They have stipulated that the amount invested in stocks should be equal to the sum of the amount invested in bonds and 7 times the amount invested in the money market account. How should the Garcias allocate their resources if they require an annual income of $20,000 from their investments?
A) Investment in stocks: , investment in bonds:
,
Investment in money market account: .
B) Investment in stocks: , investment in bonds:
,
Investment in money market account: .
C) Investment in stocks: , investment in bonds:
,
Investment in money market account: t.
D) Investment in stocks: , investment in bonds:
,
Investment in money market account: t.
E) The problem has no solution.
Correct Answer:
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