Question

Stock in Ombor Medical Supplies earns a return of 5.3% annually, while bonds issued by Ombor Medical Supplies earns a return of 4.1% annually. If you invest a total of $2,400 in Ombor Medical Supplies, $1,400 of which is in bonds and $1,000 of which is in stocks, which side of the investment will show a greater return after six years, and how much greater will it be?
a. The stocks will earn $55.60 more than the bonds.
b. The stocks will earn $118.60 more than the bonds.
c. The bonds will earn $82.00 more than the stocks.
d. The bonds will earn $26.40 more than the stocks.

Answer 1

Answer:

d. The bonds will earn $26.40 more than the stocks.

Step-by-step explanation:

Assuming, the rates are uniform for 6 years.

Stock in Ombor Medical Supplies earns a return of 5.3% annually, so $1000 will yield annually;

$0.053\times1000=53$ dollars

Total amount in 6 years will become = $53\times6=318$ dollars

                                                                                                           

Bonds issued by Ombor Medical Supplies earns a return of 4.1% annually, so $1400 will yield annually;

$0.041\times1400=57.40$ dollars

Total amount in 6 years will become = $57.40\times6=344.40$ dollars

We can see that bonds have high yield than stocks.

So, difference amount is = $344.40-318=26.40$ dollars.

Therefore, The bonds will earn $26.40 more than the stocks.

Answer 2

Answer:

it is d

Step-by-step explanation:

i took the edu test :)