« 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 82 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?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

The Last 10,000 Years of Greenhouse Gas Concentrations The Last 10,000 Years of Greenhouse Gas Concentrations
Checklist of Developmental Skills: Birth to 5 years Checklist of Developmental Skills: Birth to 5 years
Stepwise approach for managing asthma in adults and patients 12 years and older. Stepwise approach for managing asthma in adults and patients 12 years and older.
Students and Money Students and Money
What rate, compounded once every 3 years, is equivalent to 9% effective rate? What rate, compounded once every 3 years, is equivalent to 9% effective rate?
Tracing numbers and alphabets by nat 3 years old Tracing numbers and alphabets by nat 3 years old
Video: Griffith's experiments

For a complete list of videos, visit our video library