Question

You are scheduled to receive $7,500 in three years. When you receive it, you will invest it for eight more years at 7.5 percent per year. How much will you have in eleven years?

Answer 1

$13,376

Step-by-step explanation:

Given an initial investment (P) of $7,500 invested for 8 years (n) at 7.5% per annum (r),

the amount at the end of the investment will be

`A = P (1+r)^(n)`

`= 7,500 * (1.075)^(8)`

`= 7,500 * 1.7835`

= $13,376.