Question

you place $1000 in an investment at the beginning of 2021. you earn 6.0% rturn in 2021 and a 2.1% return in 2022. how much do you have in the account at the end of 2022. g

Answer 1

Answer:

I will have in the account the sum of $1,082.26 at the end of 2022.

Explanation:

a) Data and Calculations:

Investment = $1,000

Period of investment = January 2021

Interest rate for first year (2021) = 6.0%

Interest rate for the second year (2022) = 2.1%

The investment value at the end of 2022 = ($1,000 * 1.06 * 1.021) = $1,082.26

This value is based on compounding the interest, first by 6% for the first year and then by 2.1% during the second year.