Ask Question
6 September, 19:40

You save $5,000.00 and invest 60% of it in stocks while leaving the rest in a savings account earning a 4.9% APR. The stock increases 9% in the first year and loses 4% of its value the second year. What is the total amount gained during the 2 years? What would the gain have been if all of the investment had been left in the savings account?

+3
Answers (1)
  1. 6 September, 21:08
    0
    Amount invested in stocks

    5,000*0.60

    =3,000

    after one year gains 9%

    3,000 * (1+0.09)

    =3,270

    After second year loses 4%

    3,270 * (1-0.04)

    =3,139.2 amount after second year

    So Stocks gained 139.2 (3139.2-3000)

    Amount of saving account

    5,000*0.40

    =2,000

    After 2 years

    2,000 * (1+0.049) ^ (2)

    =2,200.802

    So it gained 200.802 (2200.802-2000)

    Total amount after 2 years

    3,139.2+2,200.802

    =5,340.002

    Gained 340.002 (5340.002-5000)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You save $5,000.00 and invest 60% of it in stocks while leaving the rest in a savings account earning a 4.9% APR. The stock increases 9% in ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers