You have $17,500 you want to invest for the next 40 years. You are offered an investment plan that will pay you 6 percent per year for the next 20 years and 10 percent per year for the last 20 years. a. How much will you have at the end of the 40 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the investment plan pays you 10 percent per year for the first 20 years and 6 percent per year for the next 20 years, how much will you have at the end of the 40 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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You have $17,500 you want to invest for the next 40 years. You are offered an investment plan that will pay you 6 percent per year for the next 20 years and 10 percent per year for the last 20 years. |
| a. |
How much will you have at the end of the 40 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. |
If the investment plan pays you 10 percent per year for the first 20 years and 6 percent per year for the next 20 years, how much will you have at the end of the 40 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Interest rate is the rate charged by the lender for the money loaned . It is usually expressed as an annual percentage. It can be the rate that banks gives to the severs for depositing the money or it can be the rate charged by bank to the borrowers for the amount borrowed.
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