An Investor Has a Total of $24,000 Deposited in Three

question 24

Multiple Choice

An investor has a total of $24,000 deposited in three different accounts, which earn annual interest rates of 9%, 7%, and 5%. The amount deposited in the 9% account is twice the amount in the 7% account. If the three accounts earn a total annual interest of $1700, how much money is deposited in each account?

• A) $10,200 at 9%; $5100 at 7%; $9000 at 5%
• B) $10,000 at 9%; $5000 at 7%; $8900 at 5%
• C) $10,000 at 9%; $5000 at 7%; $9000 at 5%
• D) $10,200 at 9%; $5100 at 7%; $8900 at 5%
• E) None of the above

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Definitions:

Operating Activities

Activities directly related to the production, sale, and delivery of a company's goods or services, reflecting its core business operations.

Indirect Method

A way of calculating cash flows from operating activities in the cash flow statement by adjusting net income for changes in non-cash accounts.

Net Decrease

A reduction in the quantity or value of something, calculated by subtracting the final figure from the initial figure.

Inventories

Quantities of goods that are held by a company for the purpose of resale or production.