Imagine Homer Simpson actually invested the $170,000 he earned providing Mr. Burns entertainment 10 years ago at 9% annual interest .If he invests an additional $1,600 a year today at the beginning of each year for 5 years at the same 9% annual rate. How much money will Homer have 5 years from now?

a. If Homer invested $170,000 10 years ago at 9% annual interest rate what is the future value of this investment 5 years from now?

b. If Homer invests and additional $1,600 a year at the beginning of each year for 5 years at the same 9% annual rate, what is the future value of this investment 5 years from now?

c. How much money will Homer have 5 years from now?

Answer rating: 100% (QA)

Homer will have 170000 x 10910 1600 x 1095 1009 32574176 5 years from now a 170000 ... View the full answer