Answer:
$33,445.44
Explanation:
The future value of an investment is its worth at a future date if the investment is done at a specific interest rate compounded yearly for certain number of years
It is computed as follows:
FV = PV (1+r)^n
FV = Future Value, PV = present value, r- interest rate, n- number of years
<em>Future value of $7500 after 3 years:</em>
FV = 7500× (1.08)^3 = 9,447.84
<em>Future Value of $9000 after 2 years:</em>
FV = 9000 × (1.08^2) = $10,497.6
<em>Future value of $12,500 after 1 year:</em>
FV = 12500× 1.08 = $13,500
The future value of these cashflows at the end of year 5
= 9,447.8 + 10,497.6 + 13,500
= $33,445.44
