You Would Like to Invest Some Money Today Such That

question 68

Multiple Choice

You would like to invest some money today such that your investment will be worth $100,000 fifteen years from now. Your broker gives you two options. First, you can invest at a guaranteed annual rate of 4%. Or, you can invest in stocks and hopefully earn an average of 7% per year. How much more will you have to invest today if you opt for the fixed rate rather than the stocks?

• A) $18,145.45
• B) $18,419.02
• C) $18,623.18
• D) $18,904.21
• E) $19,281.85

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