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An Investment Will Pay $289,940 at the End of Next

Question 79

Multiple Choice

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.

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