Doris Invested Some Money at 7% and Some Money at 8

question 38

Multiple Choice

Doris invested some money at 7% and some money at 8%. She invested $4,000 more at 8% than she did at 7%. Her total yearly interest from the two investments was $920. How much did Doris invest at each rate?

• A)$100 at 7%, $7,900 at 8%
• B)$5,000 at 7%, $8,000 at 8%
• C)$4,000 at 7%, $9,000 at 8%
• D)$4,000 at 7%, $8,000 at 8%
• E)$4,500 at 7%, $7,500 at 8%

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Definitions:

Investment

Allocation of resources, usually money, in order to generate income or profit.

Cash Flows

The total amount of money being transferred into and out of a business, especially regarding liquidity.

Net Present Value

A technique employed in the process of capital allocation for evaluating the profitability of a project or investment through determining the net present value of cash inflows and outflows.

Mutually Exclusive Projects

Investment projects where the acceptance of one project prevents the acceptance of another due to resource constraints or other factors.