An Investment of $6000

question 35

Multiple Choice

An investment of $6000.00 is divided between two simple interest accounts. On one account, the annual simple interest rate is 7.75%, and on the second account, the annual simple interest is 6.25%. How much should be invested in each account so that the total interest from the two accounts is $417?
(x at 7.75% and y at 6.25%.)

• A) x = $2778; y = $3222
• B) x = $417; y = $5583
• C) x = $2800; y = $3200
• D) x = $2841; y = $3159
• E) x = $3200; y = $2800

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Definitions:

Reserves

Funds set aside by a company to cover future obligations, losses, or unforeseen expenses.

Accumulated Profits and Losses

The net total of all a company's profits and losses over its lifetime, not distributed as dividends.

Treasury Stock Transaction

The acquisition or reissuance of shares by a company, which may affect shareholders' equity but do not count as assets on the balance sheet.

Cost Method

An accounting method used to record investments where the investment is recorded at cost and is not adjusted for increases or decreases in the value of the underlying asset, except to reflect impairments.