7. What is the value of y in the diagram shown to the right?
2 answers:
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Answer:
The expression to compute the amount in the investment account after 14 years is: <em>FV</em> = [5000 ×(1.10)¹⁴] + [3000 ×(1.10)⁸].
Step-by-step explanation:
The formula to compute the future value is:
PV = Present value
r = interest rate
n = number of periods.
It is provided that $5,000 were deposited now and $3,000 deposited after 6 years at 10% compound interest. The amount of time the money is invested for is 14 years.
The expression to compute the amount in the investment account after 14 years is,
The future value is:
Thus, the expression to compute the amount in the investment account after 14 years is: <em>FV</em> = [5000 ×(1.10)¹⁴] + [3000 ×(1.10)⁸].