You are scheduled to receive $20,000 in two years. When you receive it, you will invest it for six more years at 6.8 percent per year. How much will you have in eight years?

Question

Business

Wade Johnston

10 May, 23:19

You are scheduled to receive $20,000 in two years. When you receive it, you will invest it for six more years at 6.8 percent per year. How much will you have in eight years?

+4

Answers (1)

Know the Answer?

Pena · Answer 1

The amount you will have in eight years is $29,679.56

Explanation:

In order to calculate the amount you will have in eight years we would have to use the following formula:

amount you will have in eight years=PV * (1+r) ∧n

According to the given dа ta:

PV=$20,000

r=6.8%

n=6

Therefore, amount you will have in eight years=$20,000 * (1+6.8%) ∧6

amount you will have in eight years=$29,679.56