Posted by **help w/ business** on Tuesday, February 1, 2011 at 3:28pm.

If an investment of $5,000 today earns 5% in each of the next five years, and then earns 7% per year for five years after that, how much will the investment be worth at the end of the ten years?

- Finance -
**helper**, Tuesday, February 1, 2011 at 3:59pm
Is the interest compounded?

Compounded daily, quarterly, yearly, etc ?

- Finance -
**help w/ business**, Tuesday, February 1, 2011 at 4:07pm
It doesn't indicate

- Finance -
**helper**, Tuesday, February 1, 2011 at 4:56pm
$5,000 @ 5% for 5 yrs

then 7% for 5 yrs

I = PRT

I = 5000(0.05)(5)

I = 250(5)

I = 1250.00

5000 + 1250.00 = 6250.00

I = PRT

I = 6250(0.07)(5)

I = 437.50(5)

I = 2187.50

6250.00 + 2187.50 = 8437.50

## Answer this Question

## Related Questions

- finance - Mrs. Kay who is 24 years old plans to retire at the age of 60. Mrs. ...
- Trigonometry - The value V, of a $100,000 investment that earns 3% annual ...
- Maths B - Kate is thinking about investing $45000 for 5 years. She deposits her ...
- Math - Raymond puts the money he inherited in an investment that earns 4.4% per...
- Math - A Registered Education Savings Plan (RESP) earns interest at a rate of 5...
- finance - An investment offers to pay you a $10,000 a year for five years. If it...
- Personal Finance - Assume that you are 23 years old and that you place $3,000 ...
- Finance - Investment X offers to pay you $5,500 per year for nine years, whereas...
- Principles of Finance - Romo Enterprises needs someone to supply it with 121,...
- Finance - A company has identified the following investments as looking ...

More Related Questions