You have $18,000 you want to invest for the next 36 years. You are offered an in

Question

You have $18,000 you want to invest for the next 36 years. You are offered an investment plan that will pay you 8 percent per year for the next 18 years and 12 percent per year for the last 18 years.

How much will you have at the end of the 36 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

If the investment plan pays you 12 percent per year for the first 18 years and 8 percent per year for the next 18 years, how much will you have at the end of the 36 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

How much will you have at the end of the 36 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

1. Amt after 36 years = 18,000*(1.08^18)*(1.12^18) = 553,126.60

2. Amt after 36 years = 18,000*(1.12^18)*(1.08^18) = 553,126.60

The amounts are the same.

Hope this helped ! Let me know in case of any queries.

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