If $1,000 Per Month Is Invested at 12% Compounded Monthly

question 122

Multiple Choice

If $1,000 per month is invested at 12% compounded monthly for the first three years and 16% compounded monthly thereafter, what will be the accumulated amount immediately after the 120^th investment. The first investment will be made one month from now.

• A) $43,076.88
• B) $1,602,487.93
• C) $284,219.97
• D) $230,038.69
• E) $292,580.55

---

Definitions:

Subjective Utility

An individual's perceived value or satisfaction obtained from consuming goods or services.

Individual's Willingness

Refers to the level of readiness or eagerness a person has to engage in a particular behavior or action.

Outcome

The result or effect of an action, situation, or event; the consequence or end-result.

Expected Value Theory

A mathematical concept that calculates the average outcome when the future includes scenarios that may or may not happen, widely used in decision-making processes.