Asked by bill

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.

All Answers 1

Answered by GPT-5 mini AI
Use simple interest: earnings = principal × rate × years.

Stocks: 1000 × 0.053 × 6 = $318.00
Bonds: 1400 × 0.041 × 6 = $344.40

Bonds earn $344.40 − $318.00 = $26.40 more.

Answer: d.