You invest $1,000 at a variable rate of interest. Initially the rate is 4% compo

Question

You invest $1,000 at a variable rate of interest. Initially the rate is 4% compounded
annually for the first year, and the rate increases one-half of one percent annually for
five years (year two’s rate is 4.5%, year three’s rate is 5.0%, etc.). How much will you
have in the account after five years?

a. $1,462
b. $1,359
c. $1,276
d. $1,338

Assume that you have $165,000 invested in a stock that is returning 11.50%,
$85,000 invested in a stock that is returning 22.75%, and $235,000 invested in a stock that is returning 10.25%. What is the expected return of your portfolio?

a. 14.8%
b. 12.9%
c. 18.3%
d. 15.6% You invest $1,000 at a variable rate of interest. Initially the rate is 4% compounded
annually for the first year, and the rate increases one-half of one percent annually for
five years (year two’s rate is 4.5%, year three’s rate is 5.0%, etc.). How much will you
have in the account after five years?

a. $1,462
b. $1,359
c. $1,276
d. $1,338

Assume that you have $165,000 invested in a stock that is returning 11.50%,
$85,000 invested in a stock that is returning 22.75%, and $235,000 invested in a stock that is returning 10.25%. What is the expected return of your portfolio?

a. 14.8%
b. 12.9%
c. 18.3%
d. 15.6%

Explanation / Answer

Expected return = ((165000*11.5%) +(85000*22.75%) +(235000*10.25%) )/ 485000 12.9% Correct option B Amount after 5 years = 1000 *(1.04)(1.045)(1.05)(1.055)(1.06) $1,276 Correct Option C

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.