Suppose You Had $1,000 and Were Deciding Between Two Investments

question 70

Essay

Suppose you had $1,000 and were deciding between two investments.One pays 5% a year for two years while the other pays 8% the first year and 2% the second year.Which investment would provide a higher return?

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Definitions:

Dim Room

A dim room is a space where the lighting is intentionally kept low, either for ambiance, to reduce energy consumption, or to facilitate certain activities or experiments.

Widens

To become broader or more open in space or time.

Hue

A color or shade in the spectrum, distinguished by its wavelength of light.

Wavelength

The distance between successive crests of a wave, typically used in the context of electromagnetic waves.