Question

3. You save $5,000.00 and invest 6096 of it in stocks while leavin

account earning a 4.9% APR. The stock increases 9% in
value the second year. What would the gain have been
in the savings account?
while leaving the rest in a savings
creases 9% in the first year and loses 4% of its
ve been if all of the investment had been left
$433.04
$502.01
$431.90
$487.37

Answer 1

$502.01

Explanation:

This nearly incomprehensible question appears to be asking the interest earned on a $5000 investment in a savings account at 4.9% APR compounded annually for 2 years.

The value of the account is ...

$5000×1.049² ≈ $5502.005 ≈ $5502.01

The interest earned on the account would be $502.01.