Ten years ago, Hailey invested $3,600 and locked in an 9 percent annual interest

Question

Ten years ago, Hailey invested $3,600 and locked in an 9 percent annual interest rate for 20 years (ending 10 years from now). Aidan can make a 10-year investment today and lock in a 11 percent
interest rate.

How much money should he invest now in order to have the same amount of money in 10 years as Hailey?

Ten years ago, Hailey invested $3,600 and locked in an 9 percent annual interest rate for 20 years (ending 10 years from now). Aidan can make a 10-year investment today and lock in a 11 percent
interest rate.

Explanation / Answer

F.V of Hailey investment =3600*(1.09^20)= 20175.88

Let Aiden investment =x

F.V of Aiden Investment =X*(1.11^10)

X*(1.11^10)= 20175.88

X=20175.88/(1.11^10)= 7105.632

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