Final answer:
Without specific information about Sylvia's investments, it is impossible to determine how much she invested in the CD, stock, or bond fund. Instead, I provided explanations on typical return rates for various investments, addressed misconceptions about risk and returns, explained how to calculate interest, effects of changing interest rates on bonds, and common capital raising methods for start-ups.
Step-by-step explanation:
The questions provided do not contain sufficient information to definitively determine the amounts Sylvia invested in the certificate of deposit (CD), the stock, and the bond fund. However, I can provide assistance on how to approach similar investment questions and clarify some of the concepts related to the prompts given.
Regarding the return rates of different investment types, typically, stocks have a higher average return over time compared to bonds or a savings account due to the higher risk associated with the stock market. Stocks can provide higher returns because they give the investor a portion of the ownership of a company which can increase in value more significantly than the fixed income generated by bonds or the interest accrued in a savings account. as for the concern relating to high-risk investments, it is a common misconception that high risk automatically equates to low returns. High-risk investments have the potential for high returns to compensate for the increased risk; however, they also have a higher chance of losing value. Therefore, while there is a chance of low returns (or losses) with high-risk investments, their potential for high returns can attract investors who are willing to accept greater risk.calculating interest can be done using simple interest formulas. For example, the total interest from a $5,000 loan at a simple interest rate of 6% for three years would be Interest = Principal x Rate x Time = $5,000 x 0.06 x 3 = $900. Similarly, for the loan question, the interest rate can be calculated by Interest Rate = Interest / (Principal x Time) = $500 / ($10,000 x 5) = 0.01 or 1% finally, if interest rates increase, the price of existing bonds typically decreases since new bonds would be issued at the higher current rates, making older bonds with lower rates less valuable, and thus they would be sold for less than their original price. for a 5-year CD with a 2% annual compounded interest rate, the future value can be calculated using the compound interest formula: Future Value = Principal x (1 + Rate)^Time = $1,000 x (1 + 0.02)^5, resulting in a value at maturity. start-up firms commonly raise financial capital through venture capital, angel investing, crowdfunding, and obtaining loans or lines of credit. Each of these methods has different advantages and considerations for a new business.