Re: How much money will i have after 3 years?
It's all related to the future value of your money....
FV($8000, 3 year, 50% interest) = 8000*(1.5)^3 = $27,000
The $500/month annuity is valued at:
FVAF($500/month, 36 months, %50/36 interest rate) =
(((1 + .5/12)^36 - 1) / .5/12)($500)
= $40169.52
so you end up with $67169.52
Thats the real anwser. Your teacher however is probably going to want to see something like this...
Year 1
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$8000 + $6000 = $14000 + 50% = $21000
Year 2
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$21000 + $6000 = $27000 + 50% = $40,500
Year 3
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$40,500 + $6000 = $46,500 + 50% = $69750
So, thank me for doing your home work by sending $10 to "Tickner" on pokerstars.
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