Question

You are scheduled to receive $17,000 in two years. When you receive it, you will invest it for six more years at 9.75 percent per year. How much will you have in eight years?

Answer 1

Answer: $29,708.18 in eight years.

Step-by-step explanation:

Amount received in two years = $17,000

Interest rate received per year = 9.75%

Amount received in eight years,

here we are using formula for calculating amount received after eight years are as follows:

A =
`P(1+ (r)/(100)) ^(n)`

=
`17000(1+ (9.75)/(100)) ^(6)`

=
`17000(1+ 0.0975) ^(6)`

= 17000 (1.7475402)

= 29708.18 ⇒ this much a person can earn in eight years.