Suppose you receive the following end-of-year cash bonuses at work end of year 2: $4,000 end of year 4: $6,000 end of year 6: $10,000 end of year 8: $12,000 If you invest your bonuses and earn 14% on your investments, how much will you have at the end of year 12? $62,106 $69,914 $58,521 O $65

Finance Dec 22, 2020

Suppose you receive the following end-of-year cash bonuses at work end of year 2: $4,000 end of year 4: $6,000 end of year 6: $10,000 end of year 8: $12,000 If you invest your bonuses and earn 14% on your investments, how much will you have at the end of year 12? $62,106 $69,914 $58,521 O $65.900 $74,162

Expert Solution

Future value = Present value*(1+Interest rate)^number of periods

Amount at the end of Year 12 = 4000*(1+14%)^10 + 6000*(1+14%)^8+ 10,000*(1+14%)^6 + 12000*(1+14%)^4

= $74,161.65

i.e. $74,162

Hence, the answer is $74,162

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