.) How much money will you start with in each account? Show your work below. (Hint: be sure your amounts add to $25,000.00) bond= CD= stock= 2.) What will be the balance for each type of investment at the end of the third year? Be sure to show your work for each investment below
You saved $25,000.00 and want to diversify your monies.
- You invest 40% in a Treasury bond for 3 years at 4.25% APR compounded annually
- You place 35% in a CD at 3.15% APR for 3 years compounded annually
- 25% you invest in a stock plan that increases 8% the first year, decreases in value by 4% the second year, and increases by 6% the third year.
- You must show all of your work for each question in order to receive any credit.
1.) How much money will you start with in each account? Show your work below. (Hint: be sure your amounts add to $25,000.00)
bond=
CD=
stock=
2.) What will be the balance for each type of investment at the end of the third year? Be sure to show your work for each investment below.
bond- (year 1, 2 , 3)=
total balence afer 3 years=
cd ( years 1, 2 , 3)=
total balence after 3 years=
stocks (years 1, 2, 3)=
total balence after 3 years=
3.) What is your total gain from all the investments combined? Show your work below.
4.) If you had invested 25% in treasury bonds and 40% in stock, would you have more or less of a gain after three years? Show your work below.
-bond (years 1,2,3)=
-total balence after 3 years=
-stocks (years 1,2,3)=
-total balence after 3 years=
Total gain from new percentages (where CD stays the same) =
Is this more or less than the original gain? Explain.
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