You plan to invest $11,200 in 2 years in investment A, which has an expected return of 8.82 percent per year. You also plan to invest $18,200 in 9 years in investment B, which has an expected return of 9.94 percent per year. How much money do you expect to have in 12 years?

To calculate the future value of the investments, we will use the formula for compound interest:

\[
FV = PV \times (1 + r)^t
\]

Where:
- $ FV $ is the future value.
- $ PV $ is the present value (initial investment).
- $ r $ is the annual interest rate (expressed as a decimal).
- $ t $ is the time the money is invested for.

### Investment A:
- Initial investment (PV) = $11,200.
- Expected return per year (r) = 8.82% = 0.0882.
- Time horizon = 12 years - 2 years = 10 years (since the investment is made 2 years from now).

\[
FV_A = 11,200 \times (1 + 0.0882)^{10}
\]

### Investment B:
- Initial investment (PV) = $18,200.
- Expected return per year (r) = 9.94% = 0.0994.
- Time horizon = 12 years - 9 years = 3 years (since the investment is made 9 years from now).

\[
FV_B = 18,200 \times (1 + 0.0994)^{3}
\]

Next, we calculate the future values for both investments.The future value of each investment is as follows:

- Investment A: \$26,079.86
- Investment B: \$24,184.58

Therefore, the total amount of money you expect to have in 12 years is:

\[
\text{Total Future Value} = 26,079.86 + 24,184.58 = 50,264.44
\]

You can expect to have approximately **\$50,264.44** in 12 years.

Would you like more details or have any other questions?

Here are 5 related questions to explore:
1. How would the result change if the return on investment A was different?
2. What is the impact of investing earlier in investment B on the final amount?
3. What would be the future value if both investments had the same interest rate?
4. How much would you have if you invested the same amount in both investments at the start?
5. What is the effect of compounding frequency on your final amount?

**Tip:** Small differences in interest rates can lead to significant differences in long-term returns due to compounding.

Learn how to calculate the future value of investments using compound interest. This example involves investing $11,200 in 2 years at 8.82% and $18,200 in 9 years at 9.94%, with detailed calculations showing the total amount expected in 12 years.

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