Jackie plans to open her own book store in 10 years.To raise the "seed" money she has committed $10,000 she now has in a mutual fund.In addition, she plans to save $2,000 per year (end of year) for the next 5 years and $3,000 per year (end of year) for the following 5 years.How much "seed" money will Jackie have in 10 years if the investments earn 10 percent per year compounded annually?
A)$76,129
B)$63,925
C)$44,255
D)$159,370

Question

Quizplus · Accepted Answer

FV = $10,000(2.594) + $2,000(6.105)(1.611) + $3,000(6.105) = $63,925

Jackie Plans to Open Her Own Book Store in 10