Imagine Homer Simpson actually invested the $200,000 he earned providing Mr. Burns entertainment 7 years ago at 9% annual interest and starts investing an additional $1,700 a year today at the beginning of each year for 15 years at the same 9% annual rate. How much money will Homer have 15 years from today?
a. If Homer invested $200,000 7 years ago at 9% annual interest rate what is the value of this investment 15 years from now?
b. If Homer invests and additional $1,700 a year at the beginning of each year for 15 years at the same 9% annual rate, what is the future value of this investment 15 years from now?
c. How much money will Homer have 15 years from now?