Question

you are going to deposit $19000 today. You will earn an annual rateof 3.3 percent for 11 years, and then earn an annual rate of 2.7 percent for 14 years. how much will you have in your account in 25 years?

Answer 1

Answer:

After 25 years you will have in your account $42,782.05.

Explanation:

First find the Future value of $19000 invested today at the end of 11 years.

PV = - $19,000

Pmt = $0

P/yr = 1

r = 3.30%

n = 11

FV = ?

Using a Financial calculator, the Future Value (FV) after 11 years will be $27,155.46.

Use the $27,155.46 to find future value at the end of the next 14 years at the rate of 2.70%

PV = - $27,155.46

Pmt = $0

P/yr = 1

r = 3.30%

n = 14

FV = ?

Using a Financial calculator, the Future Value (FV) after 14 years will be $42,782.05.

Thus, after 25 years you will have in your account $42,782.05.