Tara invests $2,500 today and another $1,500 a year from now. Her investments starting year 2 keeps increasing by $100 every year for the next 10 years from today. She stops investing from year 11 until year 20. If she earns a rate of return of 7% on her investments, determine future worth of her investments 20 years from now?
A) $39,134
B) $61,175
C) $48,184
D) $59,290

Question

Quizplus · Accepted Answer

The Answer of Tara invests $2,500 today and another $1,500 a year from now. Her investments starting year 2 keeps increasing by $100 every year for the next 10 years from today. She stops investing from year 11 until year 20. If she earns a rate of return of 7% on her investments, determine future worth of her investments 20 years from now?
A) $39,134
B) $61,175
C) $48,184
D) $59,290

Tara Invests $2,500 Today and Another $1,500 a Year from Now