Tyler Has Two Savings Accounts That His Grandparents Opened for Him

question 137

Multiple Choice

Tyler has two savings accounts that his grandparents opened for him. The two accounts pay 12% and 18% in annual interest; there is $400 more in the account that pays 18% than there is in the other account. If the total interest for a year is $252, how much money does he have in each account?

• A) $600 invested at 12%, $1,000 invested at 18%
• B) $1,200 invested at 12%, $1,600 invested at 18%
• C) $700 invested at 12%, $1,100 invested at 18%
• D) $550 invested at 12%, $950 invested at 18%
• E) $650 invested at 12%, $1,050 invested at 18%

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Definitions:

Equipment

Tangible assets used in operations, such as machinery and computers, that have a useful life beyond one year.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.

Balance Sheet

A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholders' equity at a specific point in time, offering a basis for computing rates of return and evaluating its capital structure.

Assets

Resources owned or controlled by a business or an individual that are expected to produce future economic value.