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Mr. Pierpont has wealth of $200,000. He wants to keep at least $80,000 in bonds at...

Mr. Pierpont has wealth of $200,000. He wants to keep at least $80,000 in bonds at all times, and will shift $10,000 into bonds from his checking account for each percentage point that the interest rate on bonds exceeds the interest rate on his checking account. Currently, he keeps $100,000 in bonds, which pay him 7%. What is the current interest rate on checking accounts?

7%

5%

9%

10%
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