« previous next »

Author Question: If you invest 3,650 today, how much money will you have in 4 years? A) 3,650 B) 4,437 C) This ... (Read 77 times)

dbose

  • Hero Member
  • *****
  • Posts: 597
on: Jul 10, 2018
If you invest 3,650 today, how much money will you have in 4 years?
 
  A) 3,650
  B) 4,437
  C) This question cannot be answered because it is missing an annual rate of return.
  D) This question cannot be answered because it is missing the type of investment made.

Question 2

Which of the following investments has a larger future value: Investment A, a 1,000 investment earning 5 per year for 6 years, or Investment B, a 500 investment earning 10 per year for 6 years, with a bonus of an extra 500 added at the end of the six
 
  A) Investment B, with a future value of 1,386.
  B) Investment A, with a future value of 1,386.
  C) Investment A, with a future value of 1,340.
  D) The investments have equal value.


allisonblackmore

  • Sr. Member
  • ****
  • Posts: 330
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C

Answer to Question 2

Answer: A
Explanation: A) Investment A: FV = PV  (1 + r)n = 1,000  (1.05)6 = 1,340.
Investment B: FV = PV  (1 + r)n = 500  (1.10)6 + 500 = 1,386. The future value of Investment B is larger than the future value of Investment A by 46.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Discipline-specific training can take years to perfect. Discipline-specific training can take years to perfect.
Abundant cave art after about 30,000 years ago is evidence of the importance of symbolic behavior fo Abundant cave art after about 30,000 years ago is evidence of the importance of symbolic behavior fo
“Mission Accomplished” proclaimed the banner on the USS Abraham Lincoln, where on May 1, 2003, Presi “Mission Accomplished” proclaimed the banner on the USS Abraham Lincoln, where on May 1, 2003, Presi
Change in Bone Mass over Time In your early years, more bone mass is added than lost in your body Change in Bone Mass over Time In your early years, more bone mass is added than lost in your body
4 QUESTIONS PEASE I NEED IT TODAY AND I DONT HAVE MORE CREDITS TO START A NEW TOPIC 4 QUESTIONS PEASE I NEED IT TODAY AND I DONT HAVE MORE CREDITS TO START A NEW TOPIC
Grade 1 learn Canadian money Grade 1 learn Canadian money
Video: Body plan of euglena Animation

For a complete list of videos, visit our video library