Question

A man invest $1000 in a 12 month certificate of deposit paying 8% and $2000 and municipal bonds that pay 7% a year what is the total yearly return from both investments put together

Answer 1

$3220

Explanation:

A man invests $1000 in a 12-month certificate of deposit paying 8% interest.

So, after 1 year his money will become from the certificate deposit = $
`1000( 1+ (8)/(100) ) = 1080`

Again the man invest $2000 in municipal bonds that pays 7% a year.

So, after 1 year his money will become from the municipal bond = $
`2000( 1+ (7)/(100) ) = 2140`

Therefore, total yearly return from both the above investment will be $[(1080 + 2140) -(1000 + 2000)] = $220 (Answer)