Question
Future value(with changing interestrates). Jose has $2,000 to invest for a 2-year period. He is looking at four different investment choices. What will be the
Future value(with changing interestrates). Jose has $2,000 to invest for a 2-year period. He is looking at four different investment choices. What will be the value of his investment at the end of 2 years for each of the following potentialinvestments?
a.Bank CD at 4%.
b.Bond fund at 9%.
c. Mutual stock fund at 15%.
d.New venture stock at 22%.
a.What will be the value ofJose's bank CD investment that offers an annual rate of return of 4% for 2 years?
(Round to the nearestcent.)
b.What will be the value ofJose's bond fund investment that offers an annual rate of return of 9% for 2 years?
(Round to the nearestcent.)
c.What would be the value ofJose's mutual stock fund investment if it earns an annual rate of return of 15% for 2 years?
(Round to the nearestcent.)
d.What would be the value ofJose's new venture stock investment if it earns an annual rate of return of 22% for 2 years?
(Round to the nearestcent.)
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