A person wants to invest $17,000 for 3 years and is considering two different investments. The first investment, a money market fund, pays a guaranteed 5.1% interest compounded daily. The second investment, a treasury note, pays 5.3% annual interest. Which investment pays the most interest over the 3-year period? Choose the correct answer below. O A. The treasury note is the better investment, since the market fund produces $ note pays $ in interest. O B. The market fund is the better investment, since the market fund produces $ note pays $ in interest. O C. Both the market fund and the treasury note produce the same interest with $ (Round to the nearest cent as needed.) in interest, and the treasury in interest, and the treasury

A person wants to invest $17,000 for 3 years and is considering two different investments. The first investment, a money market fund, pays a guaranteed 5.1% interest compounded daily. The second investment, a treasury note, pays 5.3% annual interest. Which investment pays the most interest over the 3-year period? Choose the correct answer below. O A. The treasury note is the better investment, since the market fund produces $ note pays $ in interest. O B. The market fund is the better investment, since the market fund produces $ note pays $ in interest. O C. Both the market fund and the treasury note produce the same interest with $ (Round to the nearest cent as needed.) in interest, and the treasury in interest, and the treasury

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
A person wants to invest $16,000 for 2 years and is considering two different investments. The first investment, a money market fund, pays a guaranteed 5.7% interest compounded daily. The second investment, a treasury note, pays 5.9% annual interest. Which investment pays the most interest over the 2-year period? Select the correct choice below and, if necessary, fill in any answer box(es) to complete your choice. (Do not round until the final answer. Then round to the nearest cent as needed.) OA. Both the market fund and the treasury note produce the same interest with $ OB. The market fund is the better investment, since the market fund produces $ in interest, and the treasury note pays $ in interest. OC. The treasury note is the better investment, since the market fund produces $ in interest, and the treasury note pays $ in interest.
A person wants to invest $12,000 for 2 years and is considering two different investments The first investment, a money market fund, pays a guaranteed 6 4% interest compounded daily. The second investment, a treasury note, pays 6.6% annual interest Which investment pays the most interest over the 2-year period? Select the correct choice below and, if necessary, fill in any answer box(es) to complete your choice (Do not round until the final answer. Then round to the nearest cent as needed) O A. Both the market fund and the treasury note produce the same interest with $ O B. The market fund is the better investment, since the market fund produces S in interest, and the treasury note pays S in interest in interest, and the treasury note pays $ in interest O C. The treasury note is the better investment, since the market fund produces $ Clear all Check answ Help me solve this View an example Get more help - 12:34 2/27/2 delete do %24 & backspace 3 7. 8.
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a) Suppose you have $10,000 to invest in a savings account, and you have two investment options available to you. Option A is a savings account that pays an annual interest rate of 5% with compounding annually, while option B is a savings account that pays an annual interest rate of 4.5% with compounding quarterly. Both options have a 5-year term. Which option should you choose to maximize your return on investment? Why? b) Which factor do you think played a critical role in your investment decision making?
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