Linda Roy received a $205,000 inheritance after taxes from her parents. She invested it at 6.5% interest...

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Linda Roy received a$205,000 inheritance after taxes from her parents. She invested itat 6.5% interest compounded quarterly for 8 years. A year later,she sold one of her rental properties for $215,000 and investedthat money at 5.5% compounded semiannually for 7 years. Both of theinvestments have matured. She is hoping to have at least $505,000in 12 years compounded annually at 4.5% interest so she can move toHawaii.

Future Value ofInheritance Investment: $
Future Value ofRental Property Investment: $
Present Value ofFinal Investment: $
Future Value ofFinal Investment: $
Will she meether goal?
Yes
No

Answer & Explanation Solved by verified expert

3.6 Ratings (496 Votes)

Formula Future value Principal1rn Where rrate of interest per period n number of periods From the language of the questionBoth of the investments have matured it is clear that she made investment at period 8 and 7 And the See Answer

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Transcribed Image Text

Linda Roy received a$205,000 inheritance after taxes from her parents. She invested itat 6.5% interest compounded quarterly for 8 years. A year later,she sold one of her rental properties for $215,000 and investedthat money at 5.5% compounded semiannually for 7 years. Both of theinvestments have matured. She is hoping to have at least $505,000in 12 years compounded annually at 4.5% interest so she can move toHawaii.Future Value ofInheritance Investment: $Future Value ofRental Property Investment: $Present Value ofFinal Investment: $Future Value ofFinal Investment: $Will she meether goal?YesNo