« 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 90 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?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

The Sun Today and as a Giant The Sun Today and as a Giant
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
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
When the number of miles traveled is considered, drivers under 25 years of age and those over 70 are ... When the number of miles traveled is considered, drivers under 25 years of age and those over 70 are ...
Review Cognitive Changes over the Adult Years Review Cognitive Changes over the Adult Years
I NEED IT FOR TODAY PLEASE 14 QUESTIONS I NEED IT FOR TODAY PLEASE 14 QUESTIONS
Video: Control of ventilation rate by other brain centers (posts, hypothalamus & cerebral cortex)

For a complete list of videos, visit our video library