Use the Simple Interest Formula

question 85

Multiple Choice

Use the simple interest formula.
-How can $56,000 be invested, part at 4% annual simple interest and the remainder at 10% annual simple interest, so that the interest earned by the two accounts is equal at the end of the year?

• A) $16,000 invested at 4%; $40,000 invested at 10%
• B) $26,000 invested at 4%; $30,000 invested at 10%
• C) $40,000 invested at 4%; $16,000 invested at 10%
• D) $30,000 invested at 4%; $26,000 invested at 10%