Answer to Question #50303 in Microeconomics for Zakaria

Question

You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you leave the money invested for another 5 years how much will you have in the 15th year?

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Answer 1

If you deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you leave the money invested for another 5 years, then you will have in the 15th year the next sum:
FV = PV*(1+r)^n = 17,000*(1.07^1 + 1.07^2 + 1.07^3 + 1.07^4 + 1.07^5 + 1.07^6 + 1.07^7 + 1.07^8 + 1.07^9 + 1.07^10)*1.09^5 = $386,688.80