Finance
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?
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help w/ business

Is the interest compounded?
Compounded daily, quarterly, yearly, etc ?
posted by helper

It doesn't indicate
posted by help w/ business

$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
posted by helper
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