Question

You invest a single amount of $10,000 for 5 years at 10 percent. At the end of 5 years you take the proceeds and invest them for 12 years at 15 percent. How much will you have after 17 years?

Include financial calculator steps, including the keys pressed on the calculator to solve each question.

Answer 1

The amount after 17 years will be-

Invested amount x (1 + interest rate) ^ period

Here,

Amount = $10,000 x (1.10)^5 x (1.15)^12

=$86,166.31297

In the financial calculator you can press the following keys-

1.10 y^x ( 5 ) = 1.61051

1.15 y^x ( 12 ) = 5.350250105

10,000 x 1.61051 x 5.350250105 = $86,166.31297

Do let me know in the comment section in case of any doubt.