Author Question: If interest rates are 5%, which of the following will produce the largest amount of money in four years? (Read 21 times)

BrownTown3 · **on:** Apr 25, 2021

Question 1

If $100 is placed in an account that earns a nominal 4%, compounded quarterly, what will it be worth in 5 years?
◦ $122.02
◦ $105.10
◦ $135.41
◦ $120.90
◦ $117.48

Question 2

If interest rates are 5%, which of the following will produce the largest amount of money in four years?
◦ $500 earning simple interest
◦ $400 with interest compounded annually
◦ $300 with interest compounded semiannually
◦ $100 with interest compounded quarterly
◦ $25 with interest compounded monthly

jamesnevil303 · **Reply #1 on:** Apr 25, 2021

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