Question: Katina Washington is currently working as a computer programmer by Megatel Company. Her dream, however, is to start her own computer software company. To provide cash to start her own business in six years she will invest 10,000 today. She thinks the investment will earn a 15 percent annual return.
How much would Katina have in her account at the end of 6 years if she earns 12 percent on the investment? How much of this would be interest earned during the 6 year?