« 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 79 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?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago The Long Valley Caldera Erupted the Bishop Ash 760,000 Years Ago
Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first Changes in Synaptic Density From Birth to Age 2 Synaptic connections increase throughout the first
Review of Health and Illness over the Adult Years Review of Health and Illness over the Adult Years
Climate change occurs over millions of years Climate change occurs over millions of years
People are living longer today than in previous decades People are living longer today than in previous decades
Mishu wants to invest an inheritance of $20,000 for one year. His credit union offers 8.85% for ... Mishu wants to invest an inheritance of $20,000 for one year. His credit union offers 8.85% for ...
Video: Enzyme structure - Properties of enzymes

For a complete list of videos, visit our video library