Google Chrome Testaspx?testid-171108261&icenterwinsyes; MAT 1030.005 est: Exam 2

Question

Google Chrome Testaspx?testid-171108261&icenterwinsyes; MAT 1030.005 est: Exam 2 (3A, 3B, 3E, 4A, 4B, 4C, 4D) his Question: 3 pts | 22 of 28 (16 complete) This Test: 100 pts p Suppose a man invested $350 at the end of 1900 in each of three funds that tracked the averages of stocks, bonds, and cash, respectively. Assuming that his investments grew at the rates given in the table to the right, approximately how much would each investment have been Category Stocks Average Annual Retunn 2.3% 0.6% worth at the end of 20112 Cash His investment in the fund tracking stocks would be worth approximately (Do not round until the final answer. Then round to two decimal places as needed) His investment in the fund tracking bonds would be worth approximately Do not round until the final answer Then round to two decimal places as needed) His investment in the fund tracking cash would be worth approximately Do not round until the final answer Then round to two decimal places as needed)

Explanation / Answer

From the end of 1990 to the end of 2011, there are 21 years.

(A)
$350 invested in stocks will become = 350 * (1 + 0.064)^21 = $1287.78

(B)
$350 investin Bonds will become = 350 * (1 + 0.023)^21 = $564.23

(C)
$350 investin Cash will become = 350 * (1 + 0.006)^21 = $396.85

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

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