If you invested $700 today and another $1,000 in two years, to the nearest dollar, how much will your investment be worth in seven years.? Assume an 8.4% annual compound return.
A)$616
B)$749
C)$1,364
D)$2,728
E)None of the above

Question

Quizplus · Accepted Answer

The $700 investment will grow for 7 years, and the $1,000 investment will grow for 5 years. Using the compound interest formula: Future Value = Present Value * (1 + rate)^n, the total future value is $700*(1.084)^7 + $1,000*(1.084)^5 = $1,228.44 + $1,499.56 = $2,728.

If You Invested $700 Today and Another $1,000 in Two