Question
Jose has $6,000 to invest for a 2-year period. He is looking at four different investment choices. What will be the value of his investment
Jose has $6,000 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 potential investments?
a. bank cd at 5%
b. bond fund at 8%
c mutual stock fund at 15%
d. new venture stock at 20%
(round all answers to the nearest cent)
a. What will be the value of Jose's bank CD investment that offers an annual rate of return of 5% for 2
years?
b. What will be the value of Jose's bond fund investment that offers an annual rate of return of 8% for 2
years?
c. What would be the value of Jose's mutual stock fund investment if it earns an annual rate of return of 15% for 2
years?
d. What would be the value of Jose's new venture stock investment if it earns an annual rate of return of 20% for 2 years?
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