Question: Two investments PAY $ 2 0 , 0 0 0 in 1 0 years: Security with: 8 . 5 % Interest Rate OR 7 .

Two investments PAY $20,000 in 10 years: Security with: 8.5% Interest Rate OR 7.0% Int Rate. Which would cost more to the investor?
The 4.0% security as today's cost would be $12,787.08
The 7.0% security as today's cost would be $10,166.99
The 6% security as today's cost would be $10,979.71
The 8.5% security as today's cost would be $8,545.71
Two investments PAY $ 2 0 , 0 0 0 in 1 0 years:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Programming Questions!