You have $10 000 to invest.If you invest it at 11.2% p.a.for six months,then invest the initial $10 000 together with any interest for a further 12 months at 12.7% p.a. ,what will be the value of your investment at the end of the 18-month period?
A)$11 901.12
B)$12 532.24
C)$11 830.00
D)$12 241.36

Question

Quizplus · Accepted Answer

The correct answer is A.The value of the investment at the end of the 18-month period is $11,901.12. This is calculated by first investing the $10,000 at 11.2% p.a. for six months, which gives a return of $560. Then, investing the initial $10,000 together with the interest for a further 12 months at 12.7% p.a., which gives a return of $1,341.12. The total value of the investment at the end of the 18-month period is therefore $10,000 + $560 + $1,341.12 = $11,901.12.

You Have $10 000 to Invest