An Investor Wants to Determine How Much Interest He Must $\le$

question 32

Multiple Choice

An investor wants to determine how much interest he must earn to be able to make the payments on a 10-year mortgage which has increasing annual payments. The problem is summarized in the accompanying spreadsheet. The investor has enough money to make an initial investment of $9,000 and hopes he can earn 12%, compounded quarterly, on his investments. He would like to know how low his annual return can be and still allow him to make his payments from interest income. What constraint must be entered in the Risk Solver Platform (RSP) task pane?

• A)$D$7:$D$16 \(\le\) $E$7:$E$16
• B)$C$7:$D$16 \(\ge\) $E$7:$E$16
• C)$C$7:$C$16 \(\ge\) $E$7:$E$16
• D)$D$7:$D$16 \(\ge\) $E$7:$E$16

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Definitions:

Tasks

Distinct activities or actions that are undertaken to achieve a particular goal, often constituting parts of larger projects or processes.

Psychological Requirements

Emotional or mental needs that must be satisfied for individuals to perform efficiently and effectively in their environment.

Physical Requirements

These are the necessary physical conditions and efforts needed to perform a job or task, which can include strength, dexterity, or stamina.

Allowances

Considerations for factors, such as time or money, that are set aside as safe margins to prevent overestimation in budgets or schedules.