Your current investment will mature in 2 years for $30,000,at which time you will reinvest the funds for 10 more years at 7% per year.What will be the value of your investment at the end of the 12th year?
A) $59,014.54
B) $55,153.78
C) $61,985.74
D) $67,565.75
E) $52,734.41

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc27_e5fb_a768_3b1b31270212_TB2902_00 FV = 30,000 × 11ea7fdb_fc27_e5fc_a768_4f38158fb767_TB2902_00 = $59,014.54
Using a financial calculator:
N = 10, I/Y = 7, PV = -30,000, PMT = 0, cpt FV = $59,014.54

Your Current Investment Will Mature in 2 Years for $30,000,at