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Elan Coil [88]
3 years ago
7

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.
Mathematics
2 answers:
melisa1 [442]3 years ago
7 0

Answer:

i think it is D bro let me know if i am right okay and can i get branliest if i get it right

Step-by-step explanation:


rodikova [14]3 years ago
7 0

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

<u>                                                                                                             </u>

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.

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