Question

You are scheduled to receive $35,000 in two years. When you receive it, you will invest it for 6 more years at 7 percent per year. How much will you have in 8 years?

Answer 1

$52,526

Step-by-step explanation:

In two years i have $35,000.

the amount invested thus the Principle amount is $35,000

Pv = $35,000

r = 7 %

PMT = $0

n = 6

Fv = ?

Note that The 8 th year is the sixth year of this investment.

FV = PV × (1 + r) n

= $35,000 × ( 1 + 0.07) 6

= $52,525.56

= $52,526