Question

you will receive $15,000 in two years when you graduate. you plan to invest this at an annual interest rate of 6.5 percent. how much money will you have 8 years from now?

Answer 1

Answer:

$24,824.94

Explanation:

For this problem, you use the compound investment equation. 15000 is the principal amount, 1.065 is the rate at which it increases each year (6.5% annually), and 8 is the years elapsed. $15000(1.065)^8$ gets you $24,824.94