A Total of $25,000 Was Invested in Two Accounts for One

question 205

Multiple Choice

A total of $25,000 was invested in two accounts for one year and the amount earned was $1,550. Part of the money was invested at 6% and the rest at 7%. Write a system of two equations in two unknowns that would model the situation. Let x = amount invested at 6% and y = amount invested at 7%.

• A) \(\left\{ \begin{array} { l }
• x + y = 1,550 \\
• .06 x + .07 y = 25,000
• \end{array} \right.\)
• B) \(\left\{ \begin{array} { l }
• x + y = 25,000 \\
• .6 x + 7 y = 1,550
• \end{array} \right.\)
• C) \(\left\{ \begin{array} { l }
• x + y = 1,550 \\
• .6 x + 7 y = 25,000
• \end{array} \right.\)
• D) \(\left\{ \begin{array} { l }
• x + y = 25,000 \\
• .06 x + .07 y = 1,550
• \end{array} \right.\)

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

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A public market for buying, selling, and issuing shares of publicly held companies, serving as a critical mechanism for price discovery and capital allocation.

Leverage Ratio

A financial metric used to measure the degree of a company's debt compared to its assets, equity, or operational cash flow.

Financial Statements

Comprehensive reports that provide insights into a company's financial health, including balance sheets, income statements, and cash flow statements.