# You invest a single amount of $20,000 for 6 years at 7 percent. At the end of 6 years you take...

## Question:

You invest a single amount of $20,000 for 6 years at 7 percent. At the end of 6 years, you take the proceeds and invest them for 8 years at 10 percent. How much will you have after 14 years?

## Future Value of an Investment:

The value of money depreciates with time. So, the worth of $1 today is more than that at a later date. Future value of any investment signifies the worth of that payment at the later date compounded at the given rate of return.

## Answer and Explanation: 1

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View this answerFirst, let us summarize the given:

- Invested amount = $20,000
- Interest rate for first 6 years,
*r1*= 7% = 0.07 - Interest rate for next 8 years,
*r2*= 10%...

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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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