Ch.4: Two-Stage Compound Interest | Future Value Example

Описание: How do you calculate the future value of an investment when the interest rate changes over time? 🤔

In this step-by-step finance tutorial, we’ll solve a two-stage compound interest problem:

Scenario:

Initial Investment: $5,000

Years 1–12: 8% annual return

Years 13–30: 5% annual return

Question: How much will you have at the end of 30 years?

You’ll learn how to:
✔️ Calculate future value with multiple interest rate stages
✔️ Break the problem into two time periods
✔️ Use the compound interest formula step by step
✔️ Apply this method to real-life investing situations

By the end of this video, you’ll understand how to handle multi-period compound interest problems, a crucial skill for long-term investing, retirement planning, and finance classes.

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