# You have $4,000 to invest for the next 45 years. You are offered an investment plan that will pay...

## Question:

You have $4,000 to invest for the next 45 years.

You are offered an investment plan that will pay you 5% per year for the next 10 years and 12% per year for the last 35 years.

How much will you have at the end of the 45 years?

## Future Value:

Future value is the compounded value of the current value or the present value. It is calculated to find out the money we will have after a certain point of time. It is the increased value as per the time value of money approach.

## Answer and Explanation: 1

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View this answerFuture Value = Present Value x (1 + Rate)^Number of years

In the given question,

Rates are different for two sets of years so we will have to...

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Chapter 5 / Lesson 16Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.

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