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You have $250,000 in an IRA at the time you retire. You have the option of investing this money in two funds: Fund A pays

You have $250,000 in an IRA at the time you retire. You have the option of investing this money in two funds: Fund A pays 2.8% annually and Fund B pays 7.8% annually.

How should you divide your money between Find A and Fund B to produce an annual interest income of $10,500?

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