Answer:
$86,166.31
Explanation:
We use future value (FV) formula as follows:
Step 1: Calculation of amount to have after five years:
Five years FV = $10,000 × (1 + 0.1)^5
= $10,000 × (1.01)^5
= $10,000 × 1.61051
Five years FV = $16,105.10
Therefore, $16,105.10 will be realized after five years.
Step 2: Calculation of amount to have after twelve years:
Twelve years FV = $16,105.10 × (1 + 0.15)^12
= $16,105.10 × (1.15)^12
= $16,105.10 × 5.35025010547371
Twelve years FV = $86,166.31
Therefore, you will have $86,166.31 after 17 years.
