Solve the Problem. -Kevin Invested Part of His $5000 Bonus in a Certificate

question 186

Multiple Choice

Solve the problem.
-Kevin invested part of his $5000 bonus in a certificate of deposit that paid 2% annual simple interest, and the remainder in a mutual fund that paid 4% annual simple interest. If his total
Interest for that year was $140, how much did Kevin invest in the mutual fund?

• A) $4986.00
• B) $4846.00
• C) $2000.00
• D) $2140.00

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Definitions:

Estate

The total value of all the assets owned by an individual at the time of their death, including property, cash, and investments, minus any liabilities.

Interest Income

Income earned from lending funds or depositing money in interest-bearing accounts.

Budgetary Control Accounts

Accounting tools used to compare actual financial performance with budgeted amounts, facilitating effective financial management and control.

Budgeted Expenditures

The estimated amount of money allocated for specific expenses in a future period as part of a budgeting process.