An investment will pay $289,940 at the end of next year for an investment of $190,000 at the start of the year. If the market interest rate is 9% over the same period, should this investment be made?
A) No, because the investment will yield $82,840 less than putting the money in a bank.
B) Yes, because the investment will yield $66,272 more than putting the money in a bank.
C) Yes, because the investment will yield $74,556 more than putting the money in a bank.
D) Yes, because the investment will yield $82,840 more than putting the money in a bank.
Correct Answer:
Verified
Q74: Why should you approach every problem by
Q75: If the rate of interest (r) is
Q76: Stella deposits $4500 in a savings account
Q77: A lender lends $10,100, which is to
Q78: What is one of the prerequisite conditions
Q80: Dollar amounts received at different points in
Q81: A vintner is deciding when to release
Q82: If money is invested at 8% per
Q83: A dollar today and a dollar in
Q84: If the interest rate is 9%, the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents