Question
1. Which assertion is true? Person Amount invested Time that funds are invested Annual return on investment Emily 16,450 dollars In 2 year(s) from today
1. Which assertion is true?
Person | Amount invested | Time that funds are invested | Annual return on investment |
Emily | 16,450 dollars | In 2 year(s) from today | 11.42 percent |
Theo | 34,335 dollars | In 5 year(s) from today | 5.78 percent |
Zoey | 41,613 dollars | In 9 year(s) from today | 6.83 percent |
Theo will have more money in 13 years than Emily will have in 13 years and Zoey will have more money in 13 years than Emily will have in 13 years | ||
Emily will have more money in 13 years than Theo will have in 13 years and Zoey will have more money in 13 years than Emily will have in 13 years | ||
Emily will have more money in 13 years than Theo will have in 13 years and Emily will have more money in 13 years than Zoey will have in 13 years | ||
Theo will have more money in 13 years than Emily will have in 13 years and Emily will have more money in 13 years than Zoey will have in 13 years |
2. What is X if X equals the value of investment A plus the value of investment B? Investment A is expected to pay 13,400 dollars in 7 year(s) from today and has an expected return of 17.94 percent per year. Investment B is expected to pay 19,000 dollars in 2 year(s) from today and has an expected return of 15.73 percent per year.
3. Orange Valley Packaging just bought supplies from Red Royal Consulting. Orange Valley Packaging has been offered the 3 possible payment options described in the table. If the discount rate is 13.73 percent, which of the assertions is true?
Option | Terms of payment (amount and timing) from Orange Valley Packaging to Red Royal Consulting |
A | 13,132 dollars in 1 year(s) |
B | 21,720 dollars in 5 years |
C | 42,087 dollars in 10 years |
Orange Valley Packaging should prefer option A more than option B, and Orange Valley Packaging should prefer option C more than option A | ||
Orange Valley Packaging should prefer option A more than option B, and Orange Valley Packaging should prefer option A more than option C | ||
Orange Valley Packaging should prefer option B more than option A, and Orange Valley Packaging should prefer option A more than option C | ||
Orange Valley Packaging should prefer option B more than option A, and Orange Valley Packaging should prefer option C more than option A |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started