When I Was Considering What to Do with the $9,000

question 79

Short Answer

When I was considering what to do with the $9,000 proceeds from my sale of technology stock, my broker suggested I invest half of it in municipal bonds, whose value was growing by 12% per year, and the other half in certificates of deposit (CDs), which were yielding 3% per year compounded every 2 months. Assuming that these rates are sustained, how much will my investment be worth in 12 years Round your answer to the nearest cent.

$ __________

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Definitions:

Cost-Push Inflation

It occurs when the overall prices in an economy increase due to rising costs of wages and raw materials.

Employment

A state of having a paid job or occupation, contributing to an economy's workforce.

Anticipated Inflation

Inflation that is expected to occur in the future, as predicted by current economic indicators and analysis.

Unanticipated Inflation

Inflation that occurs when the actual rate is not what was expected, causing uncertainty and potential issues for businesses and consumers.