10. William has $14 000. He invests it into a fund that he predicts will pay out a 5% return annually. Caleb has $18 000. He invests it into a government bond that gives him a guaranteed annual rate of return of 3.4%. a. b. C. d. Create expressions for their net investment at any time. Call one function W (t) and the other C(t). Approximate how fast William's money growing after 3 years? 8 years? Include units. Explain your answer. Predict whose investment will grow to become $25 000 first. Then determine if you are correct and by how many years. If neither person changes their investment strategy, when will William finally have more money than Caleb?
10. William has $14 000. He invests it into a fund that he predicts will pay out a 5% return annually. Caleb has $18 000. He invests it into a government bond that gives him a guaranteed annual rate of return of 3.4%. a. b. C. d. Create expressions for their net investment at any time. Call one function W (t) and the other C(t). Approximate how fast William's money growing after 3 years? 8 years? Include units. Explain your answer. Predict whose investment will grow to become $25 000 first. Then determine if you are correct and by how many years. If neither person changes their investment strategy, when will William finally have more money than Caleb?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:10.
William has $14 000. He invests it into a fund that he predicts will pay out a 5% return annually.
Caleb has $18 000. He invests it into a government bond that gives him a guaranteed annual rate of return of
3.4%.
a.
b.
C.
d.
Create expressions for their net investment at any time. Call one function W (t) and the other C(t).
Approximate how fast William's money growing after 3 years? ... 8 years? Include units. Explain your
answer.
Predict whose investment will grow to become $25 000 first. Then determine if you are correct and by
how many years.
If neither person changes their investment strategy, when will William finally have more money than
Caleb?
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