There are two investment options available for you. The first option requires you to invest 5,000$ in 1 year with 7% interest rate and collect your return in year 27. Second option requires you to put 500$ today with 11% interest rate and collect the fund in year 65. What is the compounding effect combination of these two investments? Select one: a.490,510 b.410,795 c.470,570 d.465,070

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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There are two investment options available
for you. The first option requires you to invest
5,000$ in 1 year with 7% interest rate and
collect your return in year 27. Second option
requires you to put 500$ today with 11%
interest rate and collect the fund in year 65.
What is the compounding effect combination
of these two investments?
Select one:
a.490,510
b.410,795
c.470,570
d.465,070
Transcribed Image Text:There are two investment options available for you. The first option requires you to invest 5,000$ in 1 year with 7% interest rate and collect your return in year 27. Second option requires you to put 500$ today with 11% interest rate and collect the fund in year 65. What is the compounding effect combination of these two investments? Select one: a.490,510 b.410,795 c.470,570 d.465,070
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