Question

98.

1-Year Investment Returns
Account
Турс
Savings
Stock
Mutual Fund
F. $460.00
G. $460.75
Amount Invested
or Deposited
$2,500
$4,730
$5,770
The table above shows how much Franklin
invested into various account types and how
much money he made from them in a year.
If Franklin had instead invested all of his
money into the mutual fund, how much
more money would he have made after the
same one-year period? Assume the rates of
returns on the account types would have
stayed the same.
H. $461.00
J. $461.50
K. $465.00
Returns on
Investment
$50.00
$283.80
$634.70

Answer 1

$461.50

Explanation:

The rate of the mutual fund is

`(634.7)/(5770)=0.11`

Franklin earned a total of $968.50 in interest.

Franklin invested a total of $13,000, so investing only in the mutual fund would earn him (13000)(0.11) = $1,430.

So, he would have made an extra $461.50