Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When I was considering what to do with my $ 1 0 , 0 0 0 lottery winnings, my broker suggested that I invest half

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 8% per year, and the other half in certificates of deposit (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 11 years? (Round your answer to the nearest cent.)following chart shows monthly figures for Apple stock in 2010.
The graph contains a series of 12 points connected by curves. The curves and the approximate points they connect are as follows.
The curves start at (Jan-10,211.98),
go down and right to (Feb-10,195.46),
go up and right to (Mar-10,218.95),
go up and right to (Apr-10,235.97),
go down and right to (May-10,235.86),
go up and right to (Jun-10,255.96),
go down and right to (Jul-10,246.94),
go up and right to (Aug-10,260.09),
go down and right to (Sep-10,258.77),
go up and right to (Oct-10,294.07),
go up and right to (Nov-10,317.13),
and go up and right to stop at (Dec-10,317.44).
Marked are the following points on the chart.
Jan. 10 Feb. 10 Mar. 10 Apr. 10 May 10 June 10
211.98195.46218.95235.97235.86255.96
July 10 Aug. 10 Sep. 10 Oct. 10 Nov. 10 Dec. 10
246.94260.09258.77294.07317.13317.44
Calculate to the nearest 0.01% your monthly percentage return (on a simple interest basis) if you had bought Apple stock in June and sold in October.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Mathematics Derivatives And Structured Products

Authors: Chan

1st Edition

9811336954, 978-9811336959

More Books

Students also viewed these Finance questions

Question

Perform an Internet search. Discuss a company that uses EPLI.

Answered: 1 week ago

Question

How do you feel about employment-at-will policies? Are they fair?

Answered: 1 week ago