Solve the problem.You inherit $42,000 from a very wealthy grandparent, with the stipulation that for the first year, the money must be invested in two stocks paying 4% and 10% annual interest, respectively. How much should be invested at each rate if the total interest earned for the year is to be $2400?

Question

A. $20,000 invested at 4%; $22,000 invested at 10%
B. $22,000 invested at 4%; $20,000 invested at 10%
C. $30,000 invested at 4%; $12,000 invested at 10%
D. $12,000 invested at 4%; $30,000 invested at 10%

Answer 1

Answer: C