If $1.900 is invested now, $3.400 two years from now, and $4.900 four years from now...

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If $1.900 is invested now, $3.400 two years from now, and $4.900 four years from now at an interest rate of 10% compounded annually, what will be the total amount in 12 years?

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Answer 1

Answer #1

Future worth ($) = 1,900 x F/P(10%, 12) + 3,400 x F/P(10%, 10) + 4,900 x F/P(10%, 8)

= 1,900 x 3.1384** + 3,400 x 2.5937** + 4,900 x 2.1436**

= 5,962.96 + 8,818.58 + 10,503.64

= 25,285.18

**From F/P Factor table

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Answer 2

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