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When I was considering what to do with the $25,000 proceeds from my sale of technology stock, my broker suggested I invest half of it in municipal bonds, whose value was growing by 8.5% per year, and the other half in CDs, which were yielding 6.25% per year compounded every two months. Assuming that these interest rates are sustained, how much will my investments be worth in 12 years?

When I was considering what to do with the $25,000 proceeds from my sale of technology stock, my broker suggested I invest half of it in municipal bonds, whose value was growing by 8.5% per year, and the other half in CDs, which were yielding 6.25% per year compounded every two months. Assuming that these interest rates are sustained, how much will my investments be worth in 12 years?

Intermediate Algebra
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 27PS
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When I was considering what to do with the $25,000 proceeds from my sale of technology stock, my broker suggested I invest half of it in municipal bonds, whose value was growing by 8.5% per year, and the other half in CDs, which were yielding 6.25% per year compounded every two months. Assuming that these interest rates are sustained, how much will my investments be worth in 12 years? 

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