Question

Please help me I’ve been stuck

Answer 1

Below

Explanation:

This is a two-stage problem

for the first 12 years use cont compounding formula

FV = PV e^(rt) Future value Presnt value r = decimal int t = years

= 2000 e^(.05 * 12) = 3644.24 use this amount for the second stage

Fv = pv e^(rt) = 3644.24 ( e^(.08*8) ) = $ 6911.23