C D F G L FUTURE VALUE AND THE STATED 1 2 Savings amount 10,000.00 Question (FV with stated rate): 4 Option A 5 Interest rate 6 Effective annual interest rate (compounded) 7 Savings after 2 years Alex plans to put $10,000 in a saving plan for 2 years. How much will you have at the end of 2 years with each of the following options? 8 Option A: Receive 12% stated annual interest rate, compounded monthly. 9 Option B 10 Interest rate 11 Effective annual interest rate (compounded) 12 Savings after 2 years Option B: Receive 12.5 % stated annual interest rate, compounded annually 13 14 Option C 15 Interest rate 16 Effective annual interest rate (compounded) 17 Savings after 2 years Option C: Receive 11.5% stated annual interest rate, compounded daily. Option D: Receive 10% stated annual interest rate in the first year and 15% stated annual interest rate in the second year, compounded annually 18 19 Option D 20 Interest rate first year 21 Interest rate second year 22 Compounded interest rate 23 Savings after 2 years 25 points in total. 24 Lu