Suppose that you invest $112,300 today. How much will this amount be worth in seven 
years if the interest rate is 7%? How would your answer change if the interest rate is 9%?

To solve this problem, we use the **future value formula** for compound interest:

\[
\text{Future Value} = P \times (1 + r)^t
\]

Where:
- $ P $ is the principal (initial investment) = $112,300
- $ r $ is the annual interest rate (in decimal form)
- $ t $ is the time period in years = 7 years

### Case 1: Interest rate = 7%
- $ r = 0.07 $

\[
\text{Future Value} = 112,300 \times (1 + 0.07)^7
\]

### Case 2: Interest rate = 9%
- $ r = 0.09 $

\[
\text{Future Value} = 112,300 \times (1 + 0.09)^7
\]

Let me calculate both values for you.### Results:
- With an interest rate of **7%**, the investment of $112,300 will grow to approximately **$180,329.26** in 7 years.
- With an interest rate of **9%**, the investment will grow to approximately **$205,288.79** in 7 years.

Do you have any further questions or would you like more details?

Here are 5 related questions to think about:
1. What would the future value be with different time periods (e.g., 5 years or 10 years)?
2. How would your investment change if interest was compounded more frequently (monthly or daily)?
3. What if the interest rate fluctuated during the investment period?
4. How much interest would you earn in each case after 7 years?
5. How would inflation affect the real value of your investment in the future?

**Tip:** Always consider the compounding frequency (annual, monthly, etc.), as it can significantly impact the final amount of your investment.

Suppose that you invest $112,300 today. How much will this amount be worth in seven years if the interest rate is 7%? How would your answer change if the interest rate is 9%?

Discover how a $112,300 investment grows over 7 years with interest rates of 7% and 9%. Using the compound interest formula, this solution provides detailed calculations and explores key financial concepts. Suitable for high school students learning about exponential growth and finance.

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