you deposit $950 at 12% for 3.5 years and toll the maturity value i to a...

you deposit $950 at 12% for 3.5 years and toll the maturity value i to a second investment that earns 8% (semi annually) for 18 months. what is the future amount?

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Expert Solution

Future Amount = Amount Invested * (1 + r1)ⁿ¹ * (1 + r2)ⁿ²

= $950 * [1 + 0.12]^3.5 * [1 + (0.08/2)]^18/6

= $950 * 1.4868 * 1.1249 = $1,588.86

jeff jeffy answered 2 years ago

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