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 9% per year, and the other half in certificates of deposit (CDs), which were yielding 6% per year, compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 15 years?

Gavyn Whitehead 2022-09-12 Answered
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 9% per year, and the other half in certificates of deposit (CDs), which were yielding 6% per year, compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 15 years?
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Answers (1)

Lorenzo Aguilar
Answered 2022-09-13 Author has 18 answers
Total amount
Half of money is unrested in gold at 9% per year
= 5000 × ( 1.09 ) 15 = $ 18212.4
and rest half money is invested with rate 6% per year compounded half yearly
Amount after 15 years
= P ( 1 + R / 2 100 ) t × 2 A c = 5000 ( 1 + 6 / 2 100 ) 15 × 2 = 5000 ( 1.03 ) 30 = $ 12136.3
Total amount after 15 years
= 18212.4 + 12136.3 = $ 30348.7

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