Sam Has $20,000 to Invest

question 103

Multiple Choice

Sam has $20,000 to invest. He invested part at 5% and part at 6%. His investments earned $1,120 total interest for the year. How much did Sam invest at each rate?

• A) $12,000; $8000
• B) $10,000; $10,000
• C) $6000; $14,000
• D) $14,000; $6000
• E) $8000; $12,000

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Definitions:

Installment Sales Method

Accounting method that recognizes revenue when payments are received rather than at the point of sale.

Revenue

The total income generated by a company from its business activities, such as sales of goods or services, before any expenses are deducted.

Income

The financial gain earned by an individual or a company, usually measured over a specific time period and derived from various sources like sales or investments.

Construction Expense

Costs directly related to the construction of a building or infrastructure, including materials, labor, and other expenses incurred during the process of building.