Answer:
The correct answer is $71,908.99.
Explanation:
According to the scenario, the given data are as follows:
PV =$22,000
For Time period (t1) = 13 years
Rate of interest (r1) = 4.5%
For time period (t2) = 16 years
Rate of interest (r2) = 3.9%
So, we can calculate the future value by using following formula:
FV = PV × (1+r1)^t1 × ( 1 + r2)^t2
So, by putting in the formula, we have
FV = ($22,000 × (1+4.5%)^13) × (1+3.9%)^16
= $71,908.99
