Question

You are scheduled to receive $15,000 in two years. When you receive it, you will invest it for six more years at 7.1 percent per year. How much will you have in eight years?

Answer 1

Answer:

$22,637

Step-by-step explanation:

When u recive $15,000 you invest it at 7.1 percent per year.

To solve this we have to do a sume of all dollars that we have at the first year with the intrest, and that wil be the total for the second years. And repeat for the follows years.

1º year= 15,000*1.071 (7.1%)=$16,065

2º year= 16,065*1.071 (7.1%)=$17,206

3º year= 17,206*1.071 (7.1%)=$18,427

4º year= 18,427*1.071 (7.1%)=$19,735

5º year= 19,735*1.071 (7.1%)=$21,137

6º year= 21,137 *1.071 (7.1%)=$22,637

The total is the money at the end of the years= $22,637