Sam has decided to invest savings of $5000. for 2 years, starting on January 1, of this year in the following portfolio:(adsbygoogle = window.adsbygoogle || []).push({});

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

**Physics Forums | Science Articles, Homework Help, Discussion**

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

# Savings account simple interest problem

**Physics Forums | Science Articles, Homework Help, Discussion**