Scenario: Consider the Following Two Options

question 22

Multiple Choice

Scenario: Consider the following two options. You can either invest $30,000 in a bank that offers you an interest rate of 6 percent compounded annually for 30 years, or you can lend $30,000 to your friend for 30 years at an interest rate of 10 percent compounded annually.
-Refer to the scenario above.If you lend $30,000 to your friend for 30 years,you will receive ________ when she repays the amount after 30 years.

• A) $552,604.62
• B) $523,482.07
• C) $1,521,725.58
• D) $3,620,025.01

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Definitions:

3-Heptanone

An organic compound that is a ketone with seven carbon atoms, where the carbonyl group is located at the third carbon.

Propanal

An aldehyde with the chemical formula C3H6O, characterized by a three-carbon chain with a terminal carbonyl group.

Chromic Acid

An oxidizing agent made by dissolving chromium trioxide in water or by dissolving dichromate salts in sulfuric acid, used primarily in cleaning laboratory glassware and in certain oxidation reactions.

3° Alcohol

A tertiary alcohol where the hydroxyl (OH) group is attached to a carbon atom that is also attached to three other carbon atoms.