ou need $10,000 in six years. Which one of the following requires the lowest investment today? Investment A: A bank account paying 5% compounded annually. Investment B: A bank account paying 5% simple interest. Investment C: A bank account paying 5.5% simple interest.     Investment A     Investment B     Investment C   You need $10,000 in six years. Which one of the following requires the highest investment today? Investment A: A bank account paying 5.5% compounded annually. Investment B: A bank account paying 5% compounded annually. Investment C: A bank account paying 5.5% simple interest.     Investment A     Investment B     Investment C   You save $10,000 for five years. Which one of the following will have the lowest future value? Investment A: A bank account paying 5.5% compounded annually. Investment B: A bank account paying 5% compounded annually. Investment C: A bank account paying 5.5% simple interest.     Investment A     Investment B     Investment C

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
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You need $10,000 in six years. Which one of the following requires the lowest investment today?

Investment A: A bank account paying 5% compounded annually.

Investment B: A bank account paying 5% simple interest.

Investment C: A bank account paying 5.5% simple interest.

   

Investment A

   

Investment B

   

Investment C

 

You need $10,000 in six years. Which one of the following requires the highest investment today?

Investment A: A bank account paying 5.5% compounded annually.

Investment B: A bank account paying 5% compounded annually.

Investment C: A bank account paying 5.5% simple interest.

   

Investment A

   

Investment B

   

Investment C

 

You save $10,000 for five years. Which one of the following will have the lowest future value?

Investment A: A bank account paying 5.5% compounded annually.

Investment B: A bank account paying 5% compounded annually.

Investment C: A bank account paying 5.5% simple interest.

   

Investment A

   

Investment B

   

Investment C 

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