Please correct answer and don't use hand rating Dimitri is willing to invest $45,000 for eight years, and is an economically rational investor. He has identified three investment alternatives (A, B, andC) that vary in their method of calculating interest and in the annual interest rate offered. Since he can only make one investment during the eightyear investment period, complete the following table and indicate whether Dimitri should invest in each of the investments.Note: When calculating each investment's future value, assume that all interest is earned annually. The final value should be rounded to the nearestwhole dollar.InvestmentInterest Rate and MethodExpected Future Value Make this investment?AB10% simple interest6% compound interest$C7% compound interest

Investment A: Simple InterestFormula: Future Value = Principal + (Principal * Interest Rate *…

Answered: Dimitri is willing to invest $45,000…

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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