Question
2 year(s) ago, Goran invested 23,426 dollars. He has earned and will earn 4.64 percent per year in compound interest. If Grace invests 30,207 dollars
2 year(s) ago, Goran invested 23,426 dollars. He has earned and will earn 4.64 percent per year in compound interest. If Grace invests 30,207 dollars in 3 year(s) from today and earns simple interest, then how much simple interest per year must Grace earn to have the same amount of money in 9 years from today as Goran will have in 9 years from today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
For each of the 4 investments described in the table, the investor would pay 4,300 dollars today to purchase the investment. Each investment would have the annual return noted in the table and each investment would make a single, lump sum payment to the investor in the number of years from today noted in the table. If RD > RC and TP > TL, then which assertion is true? All annual returns and numbers of years from today when the single, lump sum payment will be made are greater than zero.
Investment | Annual return | Number of years from today when the single, lump sum payment will be made |
C | RC | T |
D | RD | T |
L | R | TL |
P | R | TP |
Investment C will make a larger single, lump sum payment in T years than investment D will make in T years, and investment P will make a larger single, lump sum payment in TP years than investment L will make in TL years | ||
Investment C will make a larger single, lump sum payment in T years than investment D will make in T years, and investment L will make a larger single, lump sum payment in TL years than investment P will make in TP years | ||
Investment D will make a larger single, lump sum payment in T years than investment C will make in T years, and investment P will make a larger single, lump sum payment in TP years than investment L will make in TL years | ||
Investment D will make a larger single, lump sum payment in T years than investment C will make in T years, and investment L will make a larger single, lump sum payment in TL years than investment P will make in TP years |
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