SOLUTION: Jeff wins $600,000 (after taxes) in the lottery and decides to invest half of it in a 10 year CD that pays 7.25% interest compounded monthly. He invests the other half in a money m

Algebra ->  Equations -> SOLUTION: Jeff wins $600,000 (after taxes) in the lottery and decides to invest half of it in a 10 year CD that pays 7.25% interest compounded monthly. He invests the other half in a money m      Log On


   

Question 1085097: Jeff wins $600,000 (after taxes) in the lottery and decides to invest half of it in a 10 year CD that pays 7.25% interest compounded monthly. He invests the other half in a money market fund that unfortunately turns out to average only 3.2% 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?
Jeff has ______________ at the end of 10 years.
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
F%5B1%5D=300000%281%2B0.0725%2F12%29%5E%2810%2A12%29=300000%282.060232%29=618069.65
F%5B2%5D=300000%281%2B0.032%29%5E10=300000%281.37024%29=411072.31
Add those together for his total.