When I Was Considering What to Do with My $7,500

question 108

Short Answer

When I was considering what to do with my $7,500 Lottery winnings, my broker suggested I invest half of it in gold, whose value was growing by 11% per year, and the other half in certificates of deposit (CDs), which were yielding 9% per year compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 7 years Round your answer to the nearest cent.

$ __________

---

Definitions:

Distributive Negotiation

Win–lose negotiation in which a fixed number of assets is divided between parties.

Competition

The activity or condition of striving to gain superiority over others in the same field or market.

Collaboration

Working together with one or more individuals or groups to achieve a common goal or complete a task.

Distributive Negotiation

A negotiation strategy that views the resources being negotiated as fixed and limited, leading to a win-lose scenario between the parties.