An Accountant Has Money in Three Accounts That Pay 8

question 235

Multiple Choice

An accountant has money in three accounts that pay 8%, 10%, and 13% in annual interest. He has twice as much invested at 8% as he does at 10% and three times as much invested at 13% as he does at 10%. If the total interest from the three accounts if $455 for the year, how much is invested at each rate? ( Hint : Let x = the amount invested at 10%.)

• A) $1,400 invested at 8% $700 invested at 10% $2,100 invested at 13%
• B) $1,450 invested at 8% $725 invested at 10% $2,175 invested at 13%
• C) $1,410 invested at 8% $705 invested at 10% $2,115 invested at 13%
• D) $1,330 invested at 8% $665 invested at 8% $1,295 invested at 13%
• E) $1,350 invested at 8% $675 invested at 10% $2,025 invested at 13%

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Definitions:

Budget Constraint

A Budget Constraint outlines the combinations of goods and services that a consumer can purchase given their limited income and the prices of these goods and services.

Price Decrease

A reduction in the cost at which goods or services are sold to consumers.

Budget Constraint

The limitations on the goods and services available for purchase, based on the income and prices, reflecting the trade-off between different choices.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, and other forms of financial income.