SOLUTION: 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 7% per year, and the other ha

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Question 723644: 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 7% per year, and the other half in CDs, which were yielding 5% 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 by checkley79(3341) About Me  (Show Source):
You can put this solution on YOUR website!
P(1+R)^T
5,000(1+.07)^4+5,000(1+.05/2)^4*2
5,000(1.07)^4+5,000(1+.025)^8
5,000*1.31+5,000(1.025)^8
6,553.98+5,000*1.22
6,553.98+6,100=$12,633.98 ANS.