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

question 485

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 $110, how much did Kevin invest in the mutual fund?

• A) $4879.00
• B) $500.00
• C) $610.00
• D) $4989.00

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Definitions:

Usurious Interest

Exorbitantly high interest rates, often exceeding legal or ethically acceptable limits.

Unconscionable

Refers to actions or terms that are excessively unjust or unreasonable, often to a degree that they violate fairness or ethics.

Supply

The sum of a product or service that can be bought at a specific price.

Land

The surface of the earth and its natural resources, considered a fundamental factor of production in economics.