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1. Your mother is trying to choose one of the following bank CDs to deposit $10,000. Which one will have the highest future value if
1. Your mother is trying to choose one of the following bank CDs to deposit$10,000. Which one will have the highest future value if she plans to invest for three years? (Assume a 365-day year and use 4 decimal places.)
7.45%, compounded daily |
7.50%, compounded weekly |
7.51%, compounded monthly |
7.52%, compounded quarterly |
7.70%, compounded annually |
2. In 1994, Mr. Kraft bought the New England Patriots for $175 million. In 2018, the team was valued at $3.8 billion. What annual rate of return did Mr. Kraft earn on his investment? Was this a good investment if he could have earned 13.5 percent in the stock market?
13.68 percent, yes |
13.68 percent, no |
13.10 percent, yes |
13.10 percent, no |
10.50 percent, yes |
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