Question

When I was considering what to do with my $10,000 lottery winnings, my broker suggested that...

When I was considering what to do with my $10,000 lottery winnings, my broker suggested that I invest half of it in gold, the value of which was growing by 8% per year, and the other half in certificates of deposit (CDs), which were yielding 2% per year, compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 13 years? (Round your answer to the nearest cent.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If I deposit $6000 per year into my retirement account every year, how much will I...
If I deposit $6000 per year into my retirement account every year, how much will I have in 20 years? Assume interest rates of 12% compounded annually. Select one: a. $482,314.65 b. $484,192.41 c. $57,877.76 d. $432,314.65
What is the future value of $10,000 after 15 years when investing 4%? What is the...
What is the future value of $10,000 after 15 years when investing 4%? What is the future value in the preceding problem if the interest is compounded monthly? What is the future value after 22 years of year-end deposits of $50,000 earning 3%? What is the future value in the preceding problem if deposits are year-beginning? What is the most you should pay today for a piece of land which will be worth $500,000 in 4 years if you want...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly. How much will be the total you have at the end of the time? 2. How much money will you have to deposit now if you wish to have $5,000 at the end of 8 years. Interest is to be at the rate of 6% compounded semiannually? 3. In the California “Million Dollar Lottery” a winner is paid...
Calculate the present value on 28 March 2019 of $12,000 due on 15 October 2019 at...
Calculate the present value on 28 March 2019 of $12,000 due on 15 October 2019 at a simple interest rate of 9% pa. Give your answer in dollars and cents to the nearest cent. This days between dates calculator may assist you. P = $ Find the nominal annual rate of interest convertible daily (j365) that is equivalent to 6% pa effective. Give your answer as a percentage per annum to 3 decimal places. j365 = % pa Calculate the...
111.C.1: How Well Do I Respond to Turbulent Change? Instrument Listed to the right are a...
111.C.1: How Well Do I Respond to Turbulent Change? Instrument Listed to the right are a set of statements describing characteristics in a managerial job. If your job had these features, how would you react to them? Use the following rating scale for your answers: his feature would be very unpleasant for me This feature would be somewhat unpleasant for me I'd have no reaction to this feature one way or another; or it would be about equally enjoyable and...
*Round all values to 4 decimal places. 1. What is the present value of $10,000 paid...
*Round all values to 4 decimal places. 1. What is the present value of $10,000 paid at the end of each of the next 71 years if the interest rate is 8% per​ year? The present value is $______. ​(Round to the nearest​ cent.) 2. Assume that your parents wanted to have $110,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned...
In your answers, you should properly show your work by writing down your entries into the...
In your answers, you should properly show your work by writing down your entries into the calculator. For instance, if you use the TVM worksheet of your financial calculator to compute how long it takes to double your account balance given 5% annual interest rate, you should write down your entries as: I/Y=5, PV=-1, PMT=0, FV=2, CPT N=? --- the question mark here stands for your answer to the question. Question 6 – PV, Ordinary Annuity, Compounding [2 points]: Find...
6.   If the general level of interest rates goes down and I am holding a bond with...
6.   If the general level of interest rates goes down and I am holding a bond with a fixed coupon rate, I would expect the value of my bond to a.stay the same b.double c.increase d.decrease e.not enough information to tell 7.  The Rule of 72’s a.Is about doubling the present value to get the future value. b.Says that 72 divided by the payment gives you the number of years to double. c.Says that the rate divided by 72 gives you the...
Hello, I am trying to do a critical analysis of the article below using economic or...
Hello, I am trying to do a critical analysis of the article below using economic or microeconomic concepts and tools. Please can you read the article and tell me the key ideas of the article that can be helpful and the concepts ( or themes) on microeconomic that I can use to do the critical analysis of those ideas? Thanks Economists Worry a Trade War Could Derail U.S. Growth Forecasters surveyed by The Wall Street Journal predict healthy growth in...
1. John invested $20,000 fifteen years ago with an insurance company that has paid him 8...
1. John invested $20,000 fifteen years ago with an insurance company that has paid him 8 percent (APR), compounded quarterly (every 3 months). How much interest did John earn over the 15 years? a. $2,416.08 b. $45,620.62 c. $24,000.00 d. $28,318.95 e. $65,620.62 2. You are running short of cash and really need to pay your tuition. A friend suggests that you check out the local title pawn shop. At the shop they offer to loan you $5,000 if you...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT