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Savings account simple interest problem

  1. Apr 10, 2006 #1
    Sam has decided to invest savings of $5000. for 2 years, starting on January 1, of this year in the following portfolio:

    20% ip a savings account (5% simple interest, calculated daily, paid monthly)
    50% in a 2- yearGlC (6% compounded annually)
    30% in al— year term deposit (&5% simple interest, paid at term end)

    a) Why do think he has chosen to save this way?
    b) He makes no deposits to, or withdrawals from his savings account and he re—invests the final amount of the term deposit for a second term. How much will he have in his portfolio in 2 years?
    c) Suggest a different combination of saving alternatives for Sam savings portfolio. Explain your reasoning.

    http://dhseagles.kpdsb.on.ca/~Currie/gr11MT/4-2.idx [Broken]

    the above it the question that has to be answered and the link offfers my lesson in the textbook. I am really confussed with what i have to do first and wel the process in the completion of the assignment. What is the answer in general and basic statment-like without the pure math done? i have noclue when it comes to interest and money.

    thanks in advance, I really need assistance
    Last edited by a moderator: May 2, 2017
  2. jcsd
  3. Apr 10, 2006 #2
    I am ever so great full –thanks in advance
  4. Apr 10, 2006 #3


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  5. Apr 10, 2006 #4


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    a) Sam's financial advisor told him to invest them that way.
    b) $2,328.14
    c) Sam should withdraw all the money in $1s and $5s and put it under his bed.
  6. Apr 11, 2006 #5


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    Yes, you are "confussed". You are "confussed" about where to put this question- I'm moving it to the "Precalculus homework" section.

    (Actually, I like "confussed". Confused to the point of being fussed over it!)
  7. Apr 11, 2006 #6


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    Fussing over it to the extent of getting a concussion perhaps?

    Or was that concussed? I'm bewildered.
  8. Apr 11, 2006 #7
    well thanks anyway

    Sorry for bother youi was unaware that my post was not on topic. I promise to not embark for help within this site for is is strickly not for "simple interest and financial math" I would like to thank all those people who have help me out in the last two boards, you have given me something to work from. And i shall seriously concided the $1 and $5 bill remark,it is accually ingenius, and deserving of further thought!!!

    thanks and happy "mathing".
  9. Apr 12, 2006 #8
    That attitude isn't going to get help here.
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