Question

Is investing $4000 at 5% annual interest plus $4000 at 7% annual interest the same amount of money as investing $8000 at 6% annual interest?

Answer 1

Investing $4000 at 5% annual interest plus $4000 at 7% annual interest is the same amount of money as investing $8000 at 6% annual interest.

What is simple interest?

Simple interest is a type of interest that is earned only on the amount of money deposited and not on the interest already accrued.

Simple interest = principal x interest x time

Are the option equivalent?

First option = (4000 x 0.05) + (4000 x 0.7) = $200 + $280 = $480

Second option = $8000 x 0.06 = $480

To learn more about interest, please check: https://brainly.com/question/26164549