You saved $20,000.00 and want to diversify your monies. You invest 45% in a Treasury bond for 3 years at 4.35% APR compounded annually. You place 15% in a CD at 3.75% APR for 3 years compounded annually. 20% you invest in a stock plan and the remainder is in a savings account at 2.90% APR compounded annually. The stock plan increases 8% the first year, decreases in value by 4% the second year, and increases by 6% the third year.

Question

You saved $20,000.00 and want to diversify your monies.  You invest 45% in a Treasury bond for 3 years at 4.35% APR compounded annually.  You place 15% in a CD at 3.75% APR for 3 years compounded annually.  20% you invest in a stock plan and the remainder is in a savings account at 2.90% APR compounded annually.  The stock plan increases 8% the first year, decreases in value by 4% the second year, and increases by 6% the third year.

anonymous · Answer

45% = $9000 (treasure bond)
15% = $3000 (CD)
20% = $4000 (stock)
Remainder = $4000
4.35% = .0435 (treasure bond)
3.75% = .0375 (CD)
2.90% = .029 (stock)

anonymous · Answer

This above is just what I have come up with. ^^

anonymous · Answer

I have seen people posting this same question, but none of them have explained anything. I dont want straight up answers, I just want help figuring out how to do it. I could really use the extra credit for this.

anonymous · Answer

1. What are the balances for each type of investment at the end of the third week?

anonymous · Answer

2. What is your total gain from all of the investments combined?

anonymous · Answer

3. If you had invested 45% in stock and 20% in treasury bonds, would you have more or less of a gain after the three years?

anonymous · Answer

if i knew this i would help srry :(