You receive a gift of $35,000 from an uncle, but under the conditions that you must...

You receive a gift of $35,000 from an uncle, but under the conditions that you must be married and buying your first house to use it. You figure that will be at least 10 years from now. How much money will you have from saving this gift at 8% for 10 tears?

Expert Solution

Answer)

Calculation of amount of money accumulated at the end of 10 years at 8% annual interest

Money Accumulated at the end of 10 years = Amount Invested X (1 + rate of interest) ^number ^{of years}

= $ 35,000 X (1 + 0.08)¹⁰

= $ 35,000 X 2.15892

= $ 75,562.20 or $ 75,562 (Rounded off)

Therefore the amount of money accumulated by saving $ 35,000 at 8% for 10 years is $ 75,562.

ekkarill92 answered 2 years ago

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