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:

Microfinance

A type of financial service provided to unemployed or low-income individuals or groups who otherwise lack access to traditional banking services.

Collateral

An asset that a borrower offers to a lender as a security for a loan, which can be seized if the loan is not repaid.

Savings Deposits

Bank accounts that pay interest on the money deposited, meant for saving rather than daily transactions.

Capital Formation

The process of building up a country's stock of real capital, such as buildings, machinery, and equipment, which is used for production.