An Investment Will Pay $205,000 in One Year's Time for an Investment

question 52

Multiple Choice

An investment will pay $205,000 in one year's time for an investment of $183,000 today. If the market interest rate is 8% over the same period, should this investment be made?

• A) Yes, because the investment will yield $7360 more than putting the money in a bank.
• B) Yes, because the investment will yield $4280 more than putting the money in a bank.
• C) No, because the investment will yield $6240 less than putting the money in a bank.
• D) Yes, because the investment will yield $2360 more than putting the money in a bank.

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