Question

Consumer math help?

Answer 1

where's the consumer ;)

Answer 2

What is the problem?

Answer 3

You save 5000 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 year? What would the gain have been if all of the investment had been left in the savings account?

Answer 4

This is what I had
5000*60%=3000 in stocks
2000*4.9%=2098 in savings
5%*3000=150
150*3000=450000
With 2098 dollars in the savings account you can have 3000dollars in stocks and get a 5% gain from them resulting in 150/stock totaling at 450000

Answer 5

@kx2bay @jtryon

Answer 6

wowww

Answer 7

5000 * 60% = 3000 in stocks u got that correct
remaining 2000 go into savings

Answer 8

ur stocks become ( 3000 * 9% ) + 3000 = 3270 after year 1
and after year 2 they drop by 4% and become 3270 - (3270 * 4%) = 3139.20

SO
after 2 years your stocks made you 3000 - 3139.20 = $ 139.20

is that understandable ?

Answer 9

for the savings, am not sure what APR stands for - is that compound interest or what?

Answer 10

savings:
2000 + (2000 * 4.9%) = 2098 after year 1
after year 2:
2098 + (2098 * 4.9%) = 2200.80

so you made 2000 - 2200.80 = $ 200.80 after 2 years on your savings

Answer 11

wow. thank you soo much!

Answer 12

What is the total amount gained during the 2 year?
============================
total amount gained = 139.20 + 200.80 = $340

Answer 13

if all was in savings the this is what u do

Year 1 : 5000 + (5000 * 4.9%) = 5245
Year 2 : 5245 + (5245 * 4.9%) = 5502

so total amount gained is $502

Answer 14

welcome :)