Split the Pie Quiz

Quiz Questions

• 1.
  As in Chapter 3, Anju and Bharat can earn a higher return if they invest together. Anju has been offered a teaser interest rate on a 1-year CD. She can invest up to $25,000 in a CD that pays 3%. She plans to invest $5,000 at that rate as $5,000 is all she has available. Bharat was planning to invest $20,000 in a CD that pays the standard 1.5%. If Anju and Bharat pool their resources, they can take full advantage of the teaser rate Anjou has been offered. They could earn 3% on a $25,000 CD which leads to $750 in interest. To get that $750 they have to agree on how to divide it up. If they can’t reach an agreement, there are no other potential partners to work with, and so each will buy a CD on their own. What is the pie? 

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  • A.
    $150
  • B.
    $200
  • C.
    $250
  • D.
    $300
  • E.
    $450
  • F.
    $600
  • G.
    $750
• 2.
  The facts are just as above. How much interest do you expect Anju will earn?

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  • A.
    $150
  • B.
    $200
  • C.
    $250
  • D.
    $300
• 3.
  Just as before, Anjou has been offered a teaser interest rate on a one-year CD. She can invest up to $25,000 in a CD that pays 3%. She plans to invest $5,000 at that rate as $5,000 is all she has available. Bharat was planning to invest $25,000 in a CD that pays the standard 1.5%. If Anjou and Bharat pool their resources, they can take full advantage of the teaser rate Anjou has been offered. They could earn 3% on a $25,000 CD which leads to $750 in interest. On the leftover $5,000, Bharat will only earn $1%. To get that $750 they have to agree on how to divide it up. If they can’t reach an agreement, there are no other potential partners to work with, so each will buy a CD on their own. How much of the $750 interest do you expect Bharat will earn? 

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  • A.
    $360.50
  • B.
    $412.50
  • C.
    $550
  • D.
    $600

Quiz Outcomes

• 1.
  Result 1
• 2.
  Result 2
• 3.
  Result 3