James Invests $4,700 in Two Savings Accounts

question 4

Multiple Choice

James invests $4,700 in two savings accounts. One earns interest at 7% per year, while the other earns 12% per year. The total interest earned from both accounts after one year is $409. How much was originally deposited in each account?

• A) So, $3,100 was deposited in first account and $1,600 was deposited in second account.
• B) So, $2,900 was deposited in first account and $1,600 was deposited in second account.
• C) So, $1,600 was deposited in first account and $3,100 was deposited in second account.
• D) So, $2,700 was deposited in first account and $2,000 was deposited in second account.
• E) So, $2,600 was deposited in first account and $2,100 was deposited in second account.

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Definitions:

Profit

This is the financial gain obtained when the amount earned from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.

Quantity Demanded

The sum of a particular good or service that customers are ready and financially able to buy at a given price.

Productivity

The measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process.

Factor Labor

This refers to the human effort, both physical and mental, used in the production of goods and services.