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Suppose that you invest $100 today in a risk-free investment and let the 4 percent annual interest rate compound. Rounded to full dollars, what will

Suppose that you invest $100 today in a risk-free investment and let the 4 percent annual interest rate compound. Rounded to full dollars, what will be the value of your investment 4 years from now?

Identify each of the following investments as either an economic investment or a financial investment.

  1. A company builds a new factory.
  2. A pension plan buys some Google stock.
  3. A mining company sets up a new gold mine.
  4. A woman buys a 100-year-old farmhouse in the countryside.
  5. A man buys a newly built home in the city.
  6. A company buys an old factory.

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