Travis Has a Savings Account That His Parents Opened for Him

question 11

Multiple Choice

Travis has a savings account that his parents opened for him. It pays 6% annual interest. His uncle also opened an account for him, but it pays 12% annual interest. If there is $500 more in the account that pays 6%, and the total interest from both accounts is $102, how much money is in each of the accounts?

• A) $965 invested at 6%, $465 invested at 12%
• B) $900 invested at 6%, $400 invested at 12%
• C) $700 invested at 6%, $200 invested at 12%
• D) $1,000 invested at 6%, $500 invested at 12%
• E) $894 invested at 6%, $394 invested at 12%

Grasp the concept of risk associated with the length of a project's lifespan.

Understand the concepts and calculation methods of dividend yield.

Grasp the relationship between par value, offering price, and capital in excess of par.

Identify the characteristics and advantages of different types of stocks, including preferred and common stocks.

---

Definitions:

Financial Obligation

A financial commitment, duty, or liability that an individual or entity is legally bound to fulfill, such as loans or debts.

Compounded Semi-annually

The process where interest is calculated twice a year and added to the principal, allowing future interest calculations to be based on the new principal amount.

Lump Sum Payment

A single payment made at a particular time, as opposed to a series of smaller payments or installments.

Economic Difference

Refers to the variation in economic performance, wealth, or resource distribution between different regions, sectors, or individuals.