Problema Solution
Sharon and james want to begin an education fund for their two daughters. They invest $5000 in a certificate of depoist for one year, with an annual return of 5%. $4000 is invested in a more risky venture that they hope will have an annual return of 9%. How much money will they have at the end of 1 year if their risky investment performs as they hope?
Answer provided by our tutors
Sharon and james want to begin an education fund for their two daughters. They invest $5000 in a certificate of depoist for one year, with an annual return of 5%. $4000 is invested in a more risky venture that they hope will have an annual return of 9%. How much money will they have at the end of 1 year if their risky investment performs as they hope?
interest from investment of $5000 in 5%
= 5000*5*1/100
= $250
interest from investment of $4000 in 9%
= 4000*9*1/100
= $360
Total interest = $610