Reza Is Trying to Decide Between to Investment Alternatives

question 47

Multiple Choice

Reza is trying to decide between to investment alternatives.Invest A allows her to invest $100 at the beginning of every month for 15 years at an interest of 9.0% per year.Investment B allows her to invest $1,350 at the end of every year for 15 years at 8.7% interest.Which of the following is true regarding these two alternatives?

• A)Investment A will grow by $1,787 more than Investment B .
• B)Investment B will grow by $1,787 less than Investment A.
• C)Both Investment A and Investment B grow to exactly the same amount.
• D)Investment A will always be better because it always better to invest small amounts monthly rather than one amount at the end of the year.

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Definitions:

Achieved Objective

An achieved objective is a goal or target that has been successfully met or accomplished.

Offshoring

The practice of relocating business processes or production to a foreign country to reduce costs.

Evolution of Product Quality

The progressive improvement or changes in product quality over time due to innovation, customer feedback, and competitive pressures.

Continuous Improvement

An ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements.