4.2 cont

Alex is willing to invest $10,000 for six years, and is an economically rational investor. He has identified three investment alternatives (A, B, and C) that vary in their method of calculating interest and in the annual interest rate offered.

Since he can only make one investment during the six-year investment period, complete the following table and indicate whether Alex should invest in each of the investments.

Note: When calculating each investments future value, assume that all interest is compounded annually. The final value should be rounded to the nearest whole dollar.

\begin{tabular}{cll} Investment & Interest rate and Method & Expected future value Make this investment? \\ \hline A & 9% simple interest \\ B & 4% compound interest & \\ C & 6% compound interest \end{tabular}