Question

You are scheduled to receive $25,000 in two years. When you receive it, you will invest it for 6 more years at 7.9% per year. How much will you have in 8 years?

Answer 1

$25,000×7.9%=$1,975

$1,975×12= $197,500

$197,500 × 6 years = $1,18500.00

$197,500 × 8 years=$1,5800.00

answer is $1,5800.00