You invest a single amount of $14,800 for 7 years at 15 percent. At the end of 7 years you take the proceeds and invest them for

Question

astra-53 [7]

3 years ago

12

You invest a single amount of $14,800 for 7 years at 15 percent. At the end of 7 years you take the proceeds and invest them for

14 years at 17 percent. How much will you have after 21 years

Business

1 answer:

maria [59] · Answer 1 · 2022-06-04T08:20:29+03:00

Answer:

Value of investment after 21 years = $354,608.11

Explanation:

<em>The value of an amount invested at a certain rate of return for certain number of years where interest compounded annually is known as the future value. </em>

<em>The future value of an investment can be determined using the future value formula. This formula is stated below:</em>

FV = PV × (1+r)^(n)

FV - Future Value , PV- Present Value, r-rate of return, n- number of years

For the first round of investment 15% for 7 years, future value would be:

FV = 14,800 × (1.15)^(7) = 39,368.29

Second round of investing 17% for 14 year, future value would be

FV = 39,368.29 × (1.17)^(14)= 354,608.11

Future Value =$354,608.11

Value of investment after 21 years = $354,608.11