Question

Ten years ago, Hailey invested $1,500 and locked in an annual interest rate of 9 percent for 30 years (ending 20 years from now). Aidan can make a 20 year investment today and lock in an interest rate of 10 percent. How much money should he invest now in order to have the same amount of money in 20 years as Hailey

Answer 1

Hello Sir/ Mam

YOUR REQUIRED ANSWER = $2,958.23

Hailey's Investment

Present Value = $1,500

Period = 30 years

Rate of return = 9%

Aidan's Investment

Future Value = $19,901.52

Period = 20 years

Rate of return = 10%

I hope this solves your doubt.

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