Suppose $1,000 is divided into two bank accounts. one account pays 1% simple interest per year and the other pays 2.5%. after three years there is a total of $55 in interest between the two accounts. how much was invested into the bank account that pays 1% simple interest (rounded to the nearest cent)?

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%

thats one

step-by-step explanation: