You Are Considering an Investment That Is Expected to Pay

question 44

Multiple Choice

You are considering an investment that is expected to pay 5 percent in year 1, 7 percent in years 2 and 3 and 9 percent in year 4. If you invest $2,000 today, what will this investment be worth at the end of the fourth year?

• A) $2,501.42
• B) $2,693.71
• C) $2,713.04
• D) $2,620.68

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Definitions:

Crystallized Intelligence

The ability to use knowledge, skills, and experience, which generally increases with age, contrasting with fluid intelligence.

Crystallized Intelligence

a form of intelligence that involves the ability to use learned knowledge and experience.

Fluid Intelligence

The capability to think logically and solve problems in novel situations, independent of acquired knowledge.

Fluid Intelligence

The ability to reason and tackle new problems using logic, without relying on previously learned information.