Question

If an investment of $5,000 today earns 5% in each of the next five years, and then earns 7% per year for five years after that, how much will the investment be worth at the end of the ten years?

Answer 1

Is the interest compounded?

Compounded daily, quarterly, yearly, etc ?

Answer 2

It doesn't indicate

Answer 3

$5,000 @ 5% for 5 yrs
then 7% for 5 yrs

I = PRT
I = 5000(0.05)(5)
I = 250(5)
I = 1250.00

5000 + 1250.00 = 6250.00

I = PRT
I = 6250(0.07)(5)
I = 437.50(5)
I = 2187.50

6250.00 + 2187.50 = 8437.50