If the current rate of interest is 8% APR, then the future value of an investment that pays $500 every two years and lasts 20 years is closest to:

A) $11,000
B) $10,661
C) $22,881
D) $20,000

A
Explanation: A) FV = C/r ((1 + r)N - 1 ) = 500/.1664 ((1 + 0.1664)10 - 1)
FV = 10,978.91

Business

You might also like to view...

The buyer's title policy is paid by the seller.

a. true b. false

View
Business

________ are also called new-to-the-world products because the firm has created a new product category

A) Classically innovative products B) New category entries C) Line extensions D) Improved products

View
Business