Carlos invested $10,000 at 7%, $20,000 at 6.5%, and $50,000 at 5%. What is the average rate of interest earned by his investments?
A) 6.2%
B) 5.5%
C) 5.8%
D) 5.6%
E) 6.3%

Question

Quizplus · Accepted Answer

The total interest earned from all investments is calculated first: ($10,000 * 0.07) + ($20,000 * 0.065) + ($50,000 * 0.05) = $700 + $1,300 + $2,500 = $4,500. The total amount invested is $10,000 + $20,000 + $50,000 = $80,000. The average rate of interest is then the total interest divided by the total amount invested, multiplied by 100 to convert to a percentage: ($4,500 / $80,000) * 100 = 5.625%, which rounds to 5.6%.

Carlos Invested $10,000 at 7%, $20,000 at 6