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You are scheduled to receive $7,500 in two years. When you receive it, you will invest it at 4.5 percent per year. How much will your investment be worth ten years from now

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kashif9462675

Answer:

The investment will worth $10666

Explanation:

You will receive $7500 from now after two years and value of investment after ten years from now. It indicates that initial investment will remain for 8 years in actual in our hand. Therefore, using the formula FV = PV x (1+r)^n.

PV  = $7500

Rate = 4.5%

n = 8

FV = PV ( 1 + r ) ^ n

FV = $7500 ( 1+ 0.045) ^ 8

FV = $10666

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