julia earns $68,000 per year and wants to begin investing her money. she figures she can afford to invest…
julia earns $68,000 per year and wants to begin investing her money. she figures she can afford to invest 40% of her annual salary. of that, 60% will be invested in corporate bonds, while 40% will be invested in securities. if the corporate bonds and securities yield 7% and 12% annual interest, respectively, how much interest will julia earn in 1 year?\na $2,218\nb $2,448\nc $2,720\nd $3,672
Answer
Explanation:
Step1: Calculate the amount invested
Julia's annual salary is $68000$. She invests $40%$ of it. So the amount invested is $68000\times0.4 = 27200$.
Step2: Calculate the amount invested in corporate - bonds
$60%$ of the invested amount is in corporate bonds. So the amount in corporate bonds is $27200\times0.6=16320$.
Step3: Calculate the amount invested in securities
$40%$ of the invested amount is in securities. So the amount in securities is $27200\times0.4 = 10880$.
Step4: Calculate the interest from corporate - bonds
The interest rate of corporate bonds is $7%$. So the interest from corporate bonds is $16320\times0.07=1142.4$.
Step5: Calculate the interest from securities
The interest rate of securities is $12%$. So the interest from securities is $10880\times0.12 = 1305.6$.
Step6: Calculate the total interest
The total interest is the sum of the interest from corporate bonds and securities, $1142.4 + 1305.6=2448$.
Answer:
B. $2,448$