Question

George wins $990,550 (after taxes) in the lottery and decides to invest half of it in...

George wins $990,550 (after taxes) in the lottery and decides to invest half of it in a 10-year CD that pays 3.35% interest compounded bi-yearly. He invests the other half in a retirement account that averages 7.75% interest compounded annually over the 10-year period. How much money will he have altogether in the two accounts at the end of the 10-year period?

Math   Prealgebra   
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Answer #1

amount invested in CD =990550/2=495275
pays 3.35% interest compounded bi-yearly
number of times compounded per year ,n=1/2

amount in account after 10 years

=684965.194113728744425

amount invested in rerirement account =990550/2=495275
pays 7.75% interest compounded annually
number of times compounded per year ,n=1

amount in account after 10 years

=1044766.3948575898425925151282814

money he will have altogether =684965.194113728744425+1044766.3948575898425925151282814

=>money he will have altogether =1729731.5889713185870175151282814

=>money he will have altogether =1729731.60 dollars

PLEASE RATE IF HELPFUL.PLEASE COMMENT IF YOU HAVE ANY DOUBT

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