When I Was Considering What to Do with the $6,000

question 11

Multiple Choice

When I was considering what to do with the $6,000 proceeds from my sale of technology stock, my broker suggested I invest half of it in municipal bonds, whose value was growing by 15% per year, and the other half in certificates of deposit (CDs) , which were yielding 7% per year compounded every 2 months. Assuming that these rates are sustained, how much will my investment be worth in 8 years Round your answer to the nearest cent. ?

• A)$14,412.19
• B) $9,177.07
• C) $14,412.09
• D) $5,235.02
• E) $14,411.09

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Definitions:

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Amounts that taxpayers can subtract directly from the taxes they owe to the government, rather than from taxable income.

Form 1040EZ

A simplified tax form for individuals with uncomplicated tax situations, no longer in use after 2018.

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