An Investment Will Pay $205,000 at the End of Next

question 82

Multiple Choice

An investment will pay $205,000 at the end of next year for an investment of $183,000 at the start of the year.If the market interest rate is 8% over the same period,should this investment be made?

• A)No,because the investment will yield $6240 less than putting the money in a bank.
• B)Yes,because the investment will yield $2360 more than putting the money in a bank.
• C)Yes,because the investment will yield $4280 more than putting the money in a bank.
• D)Yes,because the investment will yield $7360 more than putting the money in a bank.

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Definitions:

Generalization

The process of formulating general concepts by abstracting common properties of specific instances, thus allowing for broader applications or interpretations.

Businesses

Organizations engaged in commercial, industrial, or professional activities aimed at generating profits.

Building

A structure with a roof and walls, such as a house, school, or factory, used for shelter, work, or storage.

Sound Argument

An argument that is both valid (correctly structured such that if the premises are true, the conclusion must be true) and has all true premises.