Question

The graduating class of a certain school desires to leave as a memorial two prizes of $5 each to be awarded annually for the two best compositions. What is the minimum amount of money that must be invested in 4% bonds to insure the necessary income?
A. $125
B. $250
C. $400
D. $500
E. $1000

Answer 1

two prizes of $5 each to be awarded annually

that means they need 10 every year

4% bond means you get 4% interest every year. you want 4% of the money invested to be $10

call the unknown amount x
you need

0.04 * x = 10
can you find x ?

Answer 2

u divide 10 by .04?

Answer 3

so its B?