Jasmine Has Two Investment Choices

question 38

Multiple Choice

Jasmine has two investment choices. Alternative 1 requires an immediate outlay of $150 000 and offers a return of $417 000 after seven years. Alternative 2 requires an immediate outlay of $180 000 in return for which $25 000 will be received at the end of every six months for the next seven years. Alternative 3 requires an immediate outlay of $200 000 in return for which $60 000 will be received at the end of every year for the next seven years. The required rate of return on investment is 7.4% compounded semi-annually. What is Jasmine's most preferred option?

• A) Alternative 1
• B) Alternative 2
• C) Alternative 3
• D) Alternative 3 or Alternative 2, as both are essentially same
• E) Alternative 1 or Alternative 2, as both are essentially same

Interpret the significance of numerical coefficients in algebraic expressions.

Apply properties of exponents in simplifying expressions involving powers.

Evaluate expressions with powers and roots accurately.

Understand and apply the distributive property to expand algebraic expressions.

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Definitions:

Extort

To obtain something through force, threats, or intimidation.

Sponsored

Supported financially by another party (often a company) in exchange for advertising or promoting their products or interests.

Dominating The Crime Scene

The act of controlling or having significant influence over the circumstances and outcomes at the location where a crime has occurred.

Larger Crime Organization

A comprehensive, structured group engaged in illegal activities, often operating across regions or countries.