Write the Word or Phrase That Best Completes Each Statement

question 201

Multiple Choice

Write the word or phrase that best completes each statement or answers the question.
-Kevin invested part of his $10,000 bonus in a certificate of deposit that paid 6% annual simple interest, andthe remainder in a mutual fund that paid 11% annual simple interest. If his total interest for that year was$800, how much did Kevin invest in the mutual fund?

• A)$4,000
• B)$6,000
• C)$5,000
• D)$3,000

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Definitions:

Transfer Price

The price at which goods or services are transferred between departments or subsidiaries within the same company, used for accounting and tax purposes.

Operating Income

Earnings before interest and taxes (EBIT), calculated as gross income minus operating expenses.

Variable Cost

A variable cost varies directly with the level of production or sales volume, such as materials and labor costs.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from regular business operations.