When I was considering what to do with my 10000 Lottery winn

When I was considering what to do with my $10,000 Lottery winnings, my broker suggested I invest half of it in gold, the value of which was growing by 11% per year, and the other half in certificates of deposit (CDs), which were yielding 5% per year, compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 12 years? (Round your answer to the nearest cent.)

Solution

half invested in gold = 0.5*10,000 = $ 5000

Growing at 11% per year = 5000(1 + 0.11)^12 = $17492.25

Other half invested at 5% compunded every 6 months

= 5000(1 + 0.05/2)^12*2 = $ 9043.63

Total worth = $17492.25 + $ 9043.63 = $ 26535.88