As the prize in a contest, you are offered $16,000 now or $18,100 in 5 years....

 

Transcribed Image Text:

As the prize in a contest, you are offered $16,000 now or $18,100 in 5 years. If the money can be invosted at 6% compounded annually, which prize will be worth more in 5 years? Choose the option which is worth more after 5 years. O accepting a $16,000 prize now and investing it at 6% compounded annually O accepting a $18,100 prize in 5 years As the prize in a contest, you are offered $16,000 now or $18,100 in 5 years. If the money can be invosted at 6% compounded annually, which prize will be worth more in 5 years? Choose the option which is worth more after 5 years. O accepting a $16,000 prize now and investing it at 6% compounded annually O accepting a $18,100 prize in 5 years

Answer rating: 100% (QA)

16000 now invested for 5 years at rate of 6 compounding will giv... View the full answer