Question

Suppose you receive the following end-of-year cash bonuses at work: end of year 2: $4,000 end of year 4: $6,000 end of year 6: $10,000 end of year 8: $12,000 If you invest your bonuses and earn 12% on your investments, how much will you have at the end of year 12

Answer 1

the amount that have at the end of year 12 is $65,899.63

Step-by-step explanation:

The computation of the amount that have at the end of year 12 is shown below:

Future value = Present value × (1 + Interest rate)^number of periods

= $4000 × (1 + 12%)^10 + $6,000 × (1 + 12%)^8+ $10,000 × (1 + 12%)^6 + $12,000 × (1 + 12%)^4

= $65,899.63

hence, the amount that have at the end of year 12 is $65,899.63

We simply applied the above formula so that the correct value could come

And, the same is to be considered