You Would Like to Invest Some Money Today Such That

question 112

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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Definitions:

Cerebrum

The largest part of the human brain, responsible for voluntary motor functions, sensory perception, thought, reasoning, and memory.

Auditory Cortex

The part of the brain that is responsible for processing auditory information.

Cerebellum

A major structure of the hindbrain that controls fine motor skills, balance, coordination, and posture.

Ulnar Grasp

A type of grasp reflex seen in infants, involving the fingers closing tightly around an object placed in the hand, named after the ulna bone due to its involvement in the movement.