You have $19, 500 you want to invest for the next 24 years. You are offered an i

Question

You have $19, 500 you want to invest for the next 24 years. You are offered an investment plan that will pay you 6 percent per year for the next 12 years and 10 percent per year for the last 12 years. Requirement 1: How much will you have at the end of the 24 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places Requirement 2: If the investment plan pays you 10 percent per year for the first 12 years and 6 percent per year for the next 12 years, how much will you have at the end of the 24 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places

Explanation / Answer

Requirement 1:-

Amount = $19,500 * (1 + 6%)12 * (1 + 10%)12

= $123,145.10

Requirement 2:-

Amount = $19,500 * (1 + 10%)12 * (1 + 6%)12

= $123,145.10

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