A Stockbroker Has Money in Three Accounts

question 14

Multiple Choice

A stockbroker has money in three accounts. The interest rates on the three accounts are 8%, 10%, and 12%. If she has twice as much money invested at 10% as she has invested at 8%, three times as much at 12% as she has at 8%, and the total interest for the year is $384, how much is invested at each rate? ( Hint : Let x = the amount invested at 8%.)

• A) $597 invested at 8% $1,194 invested at 10%, $1,791 invested at 12%
• B) $660 invested at 8% $1,320 invested at 10%, $1,980 invested at 12%
• C) $510 invested at 8% $1,020 invested at 10%, $1,530 invested at 12%
• D) $735 invested at 8% $1,470 invested at 10%, $2,205 invested at 12%
• E) $600 invested at 8% $1,200 invested at 10%, $1,800 invested at 12%

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Definitions:

Option Contract

A contract which grants the holder the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.

Unilateral Contract

is a type of contract where only one party makes a promise or undertakes a performance obligation in exchange for an act by the other party, creating a binding agreement once the act is performed.

Revocable Offer

An offer that can be withdrawn by the offering party before it is accepted by the offeree, typically within a certain time frame.

Unilateral Offer

An offer made by one party where acceptance is performed through an action rather than a promise of action.