You own 2 investments, A and B, which have a combined total value of $46,504. Investment A is expected to pay $57,4000 in 7 years and has an expected return of 17.10 percent per year. Investment B is expected to pay $X in 10 years and has an expected return of 10.07 percent per year. What is X? Round to the nearest dollar.

To solve for $ X $, we need to calculate the future value of Investment B based on its expected return and the combined total value of both investments.

### Step-by-Step Process:

1. **Investment A Details:**
   - Future value of Investment A = \$57,400 in 7 years.
   - Expected return for Investment A = 17.10% per year.
   - Formula: 
   \[
   FV_A = PV_A \times (1 + r_A)^t_A
   \]
   where:
   - $ FV_A $ = \$57,400 (Future Value),
   - $ PV_A $ = Present Value of Investment A (which we need to find),
   - $ r_A = 0.171 $ (annual return rate),
   - $ t_A = 7 $ years.

   Rearranging to solve for $ PV_A $:
   \[
   PV_A = \frac{FV_A}{(1 + r_A)^{t_A}} = \frac{57,400}{(1 + 0.171)^7}
   \]

2. **Investment B Details:**
   - Future value of Investment B = $ X $ (what we need to find),
   - Present value of Investment B = Total value of investments - Present value of Investment A,
   - Expected return for Investment B = 10.07% per year,
   - Formula:
   \[
   FV_B = PV_B \times (1 + r_B)^{t_B}
   \]
   where:
   - $ r_B = 0.1007 $,
   - $ t_B = 10 $,
   - $ PV_B = 46,504 - PV_A $.

Now, let's compute the present values and solve for $ X $.The future value of Investment B, $ X $, is approximately \$71,764 when rounded to the nearest dollar.

Would you like further clarification or details on any part of the process?

Here are 5 related questions to expand your understanding:
1. How does the future value formula change if the return is compounded monthly?
2. What is the impact of a different expected return on the future value of an investment?
3. How would the total present value change if the time horizon for Investment B was shorter?
4. How does the risk of an investment correlate with its expected return rate?
5. What is the difference between the present value and future value in investment terms?

**Tip:** Always keep track of time periods and compounding intervals in investment calculations—they greatly affect the results!

You own 2 investments, A and B, which have a combined total value of $46,504. Investment A is expected to pay $57,400 in 7 years and has an expected return of 17.10 percent per year. Investment B is expected to pay $X in 10 years and has an expected return of 10.07 percent per year. What is X? Round to the nearest dollar.

Find out how to calculate the future value of Investment B when the present value of two combined investments is $46,504. Learn key concepts like the present value, future value, and compound interest formulas in this step-by-step solution for finance students.

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