Linda Clark received $$229,000$ from her mother's estate. She placed the funds into the hands of a broker, who purchased the

following securities on Linda's behalf:

a$.$ Common stock was purchased at a cost of $$125,000.$ The stock paid no dividends, but it was sold for $$210,000$ at the end of three

years.

b$.$ Preferred stock was purchased at its par value of $$49,000.$ The stock paid a $7\%$ dividend $($based on par value$)$ each year for three

years. At the end of three years, the stock was sold for $$35,000.$

c$.$ Bonds were purchased at a cost of $$55,000.$ The bonds paid annual interest of $$1,000.$ After three years, the bonds were sold for

$$81,000.$

The securities were all sold at the end of three years so that Linda would have funds available to open a new business venture. The

broker stated that the investments had earned more than a $16\%$ return, and he gave Linda the following computations to support his

statement:

years