You have just purchased an investment that generates the cash flows that are shown below. If you are able to invest your money at 5.75%, compounded annually, by how much is this investment better or worse than your next best investment worth today? 0 $(9,000)
1 $1,250
2 $1,585
3 $1,750
4 $2,225
5 $3,450
A) $1,260 better
B) $533 better
C) $(533) worse
D) $8,467 better

Question

Quizplus · Accepted Answer

The Answer of You have just purchased an investment that generates the cash flows that are shown below. If you are able to invest your money at 5.75%, compounded annually, by how much is this investment better or worse than your next best investment worth today? 0 $(9,000)
1 $1,250
2 $1,585
3 $1,750
4 $2,225
5 $3,450
A) $1,260 better
B) $533 better
C) $(533) worse
D) $8,467 better

You Have Just Purchased an Investment That Generates the Cash