Question

You invest a single amount of $13,000 for 6 years at 13 percent. At the end of 6 years you take the proceeds and invest them for 15 years at 18 percent.

   
How much will you have after 21 years? Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

Answer 1

amount received after 6 years = amount invested*(1+r)^n

=>13000*(1.13)^6

=>27,065.37.

amount after 21 years will be = amount received after 6 years*(1+r)^n

=>27,065.37*(1.18)^15

=>$324,073.92.