Multiple choice

Charlie invested \$14,000 at 4 percent and Warren invested some amount at 3 percent annual interest. After a year, they earned a total return of \$770 collectively. Quantity A Amount invested by Warren in the beginning of the year Quantity B $7,000

  1. Quantity A is greater.

  2. Quantity B is greater.

  3. The two quantities are equal.

  4. The relationship cannot be determined from the information given.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Charlie's interest: 14000 * 0.04 = 560. Total interest is 770, so Warren's interest is 770 - 560 = 210. Warren's principal: 210 / 0.03 = 7000. Quantity A = 7000, Quantity B = 7000.

AI explanation

Charlie earned 4% interest on $14000, which equals 560. The total collective return was 770, so Warren's return was 770 minus 560, which equals 210. Since Warren invested at 3% interest, his principal times 0.03 equals 210. Solving this gives Warren's principal as 7000, making the two quantities equal.

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