Question

When I was considering what to do with my $10,000 Lottery winnings, my broker suggested I invest half of it in gold, the value of which was growing by 10% per year, and the other half in CDs, which were yielding 3% per year, compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 4 years? (Round your answer to the nearest cent.)

Answer 1

Yield = 5000(1.1)^4 + 5000(1.015)^8
= ....

Answer 2

Find the periodic payments necessary to accumulate $20,000 in a sinking fund paying 4% per year, with monthly payments for 5 years. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.)