You are scheduled to receive $14,000 in two years. When you receive it, you will
ID: 2630760 • Letter: Y
Question
You are scheduled to receive $14,000 in two years. When you receive it, you will invest it for eight more years at 9.5 percent per year.
How much will you have in ten years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Required:How much will you have in ten years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Explanation / Answer
Future value = present value * (1 + i)n
Future value = 14000 * (1 + 0.095)8
n = 8 since 14000 is received in 2 years
Future value in ten years = 28,936.17