Question

If you invest $8,500 per period for the following number of periods, how much would you have? a. 12 years at 10 percent.

Short answer

The investor would have $181,766.41 after 12 years.

Step-by-step solution

Identification of the required information

Payment (PMT) = $8,500

Period (n) = 12 year

Interest Rate (i) = 10%

Future value (FV)

$$\begin{gathered} \text{FV}\mathbf{=}\text{PMT}\times \left[\frac{{\left(1+i\right)}^n-1}{i}\right] \\ \mathbf{=}\$8,500\times \left[\frac{{\left(1+10\%\right)}^{12}-1}{10\%}\right] \\ \mathbf{=}\$181,766.41 \end{gathered}$$