Colin Invested $27,000, Part at 16% and Part at 1

question 48

Short Answer

Colin invested $27,000, part at 16% and part at 1%. If the total interest at the end of the year is $3120, how much did he invest at each rate?

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Definitions:

Public Company Accounting Oversight Board

A regulatory body established by Congress to oversee the audits of public companies in order to protect investors and the public interest.

Return on Assets Ratio

An indicator of how profitable a company is relative to its total assets, measuring the efficiency of asset use.

Operating Income

The income produced from the normal operations of a company, subtracting operating expenses from gross profit.

Average Total Assets

A measure used to evaluate a company's efficiency and profitability, calculated by averaging the total assets at the beginning and end of an accounting period.