We have been provided with the information as follow
A politician requests her company for two weeks for a fee of $31,000 per week
prevailing interest rate of 11%
If she agrees to this arrangement, how much money should she have in 14 years from this one transaction
| Per week | No of week | Total | |
| At year 1 | 31000 | 2 | 62000 |
| Calculation that Serra will earn is as follow |
FV = C x (1+r)n
= 62000 x (1+0.11) 14
= $ $267,247.34
If today serra earn $62,000.00 and invest it at a rate of 11.00%, you would have $267,247.34 at the end of 14 time periods . In other words, a future value of $267,247.34 is equal to a present value of only $62,000.00.
