When Sara Whitehorse changed jobs, she rolled over the $43,650 in her retirement account into two simple interest accounts. On one account, the annual simple interest rate is 7.5%, and on the second account, the annual simple interest is 6%. How much must be invested in each account if the two accounts earned the same amount of annual interest? (x at 7.5% and y at 6%.) A.x = $19,400; y = $24,250 B.x = $19,500; y = $24,350 C.x = $19,410; y = $24,240 D. x = $24,250; y = $19,400 E.x = $19,501; y = $24,149
When Sara Whitehorse changed jobs, she rolled over the $43,650 in her retirement account into two simple interest accounts. On one account, the annual simple interest rate is 7.5%, and on the second account, the annual simple interest is 6%. How much must be invested in each account if the two accounts earned the same amount of annual interest? (x at 7.5% and y at 6%.) A.x = $19,400; y = $24,250 B.x = $19,500; y = $24,350 C.x = $19,410; y = $24,240 D. x = $24,250; y = $19,400 E.x = $19,501; y = $24,149
Chapter3: Income Sources
Section: Chapter Questions
Problem 79P
Related questions
Question
100%
Expert Solution
Introduction
The interest calculated only on the principal portion of an investment is called as the simple interest. Simple interest is the product of principal amount, interest rate and time.
Sara has deposited the sum of $43,650 for her retirement in two separate simple interest rate accounts of 7.5% and 6% respectively.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning