Asked by
Locadine Ngasoh
on Dec 09, 2024Verified
Which of the following will result in a future value greater than $100?
A) $40 deposited now with an annual interest rate of 14% for 8 years.
B) $60 deposited now with an annual interest rate of 12% for 4 years.
C) $60 deposited now with an annual interest rate of 8% for 6 years.
D) $80 deposited now with an annual interest rate of 7% for 3 year.
E) $80 deposited now with an annual interest rate of 10% for 2 year.
Annual Interest Rate
The percentage of principal charged or earned as interest for a period of one year.
Future Value
The value of an investment at a specific date in the future, accounting for factors like interest rates and compounding.
- Analyze multiple investment opportunities according to their interest rates and the length of the investment term.
Verified Answer
CB
Learning Objectives
- Analyze multiple investment opportunities according to their interest rates and the length of the investment term.
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