When I was considering what to do with the $10,000 proceeds from my sale of technology stock, my broker suggested I invest half of it in municipal bonds, whose value was growing by 6% per year compounded annually, and the other half in CDs, which were yielding 3% per year compounded every two months. Assuming that these interest rates are sustained, how much will my investments be worth in 10 years?

When I was considering what to do with the $10,000 proceeds from my sale of technology stock, my broker suggested I invest half of it in municipal bonds, whose value was growing by 6% per year compounded annually, and the other half in CDs, which were yielding 3% per year compounded every two months. Assuming that these interest rates are sustained, how much will my investments be worth in 10 years?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Similar questions

John wants to buy a new sports car, and he estimates that he'll need to make a $4,500.00 down payment towards his purchase. If he has 29 months to save up for the new car, how much should he deposit into his account if the account earns 3.673% compounded continuously so that he may reach his goal? John needs to deposit $ 4,114.97
Sam Long anticipates he will need approximately $226,900 in 10 years to cover his 3-year-old daughter’s college bills for a 4-year degree. How much would he have to invest today at an interest rate of 6% compounded semiannually?
Evan wants to put some money into an investment fund that has paid, on average, 13.2% per year, compounded semi-annually over the past 10 years. How much should he put into the fund if he wants to have $10 000 four years from now?
Suppose that $2500 is placed in a savings account at an annual rate of 5%, compounded quarterly. Assuming that no withdrawals are made, how long will it take for the account to grow to $4500?
If you had invested $14,000 on January 1, 2009, at 6 % interest compounded quarterly , how much would you have had on April 1, 2013 ?
In 10 years, Cindy wants her investment to reach $40000 for a down payment on a smallhome. She has three investment options:Plan A: 6% annual interest, compounded yearlyPlan B: 5% annual interest, compounded semi-annuallyPlan C: 4.5% annual interest, compounded monthlya)Calculate the present value of each option to determine the amount that Cindy would need to invest today to have her down payment in 10 years.b)Which plan should Cindy choose?
Nine years from now, Sam wants to have an amount available to deposit into an account that earns 6 percent compounded annually. This account is to provide Sam with an income of $10,000 at the end of each year for 10 years. To accomplish this, Sam invests in an 8-year bank certificate that pays 8 percent compounded semiannually, and he will use this certificate, plus interest , to establish his income account. What should be the principle value of the certificate be ? solving these math details