Suppose You Deposit $10,000 on March 21 in a Fund

question 93

Multiple Choice

Suppose you deposit $10,000 on March 21 in a fund earning simple interest at r = 13%.How much will you have exactly 6 months later?

• A)$10,664.44
• B)$10,658.91
• C)$10,655.34
• D)$10,650.00

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Definitions:

Expected Utility

The expected value of an individual’s total utility given uncertainty about future outcomes.

Repairs

Activities or processes aimed at restoring a damaged, broken, or malfunctioning object to its original or operating condition.

Risk-Averse

Risk-averse describes individuals or entities that prefer to avoid risk and would rather choose a certain outcome over a gamble with potentially higher, but uncertain, rewards.

Expected Value

The anticipated value for an investment or probability-weighted average of all possible values in a probabilistic scenario.