finance

8 9 10 11 12 13 14 15 16 Suppose Joe Smith plans to invest $1,000. He can eam an effective annual rate of 2.5% on Security A, while Security B has an effective annual rate of 4%. He believes that after 7 years the compounded value of Security B should be more than twice the compounded value of Security A. (Ignore risk, and assume that compounding occurs annually) a. Is he correct? Show work and calculate to two decimals. b. If he is not correct, is security B more than A and by what %? c. If he is not correct, the security that Joe should look for to double Security A's return should have a return of d. If Joe picks security B, how many years will it take for it to double its value? %. I Page 1 of 1 129 Words English (US) 71794 fun @