Multiple Compounding (PV): Rick Rodriquez Plans to Invest Some Money

question 4

Multiple Choice

Multiple compounding (PV) : Rick Rodriquez plans to invest some money today so that he will receive $7,500 in three years. If the investment he is considering will pay 3.65 percent compounded daily, how much will he have to invest today?

• A) $5,276
• B) $6,722
• C) $6,897
• D) $7,140

---

Definitions:

Distribution

The process of distributing electrical energy from the transmission system to the end users or consumers effectively.

Isolation

The process or condition of separating or being separated from a system or environment, often for safety, such as electrical isolation to prevent shock.

Turns Ratio

The ratio of the number of turns in the primary winding of a transformer as compared to the turns of wire in the secondary winding.

Secondary Voltage

The output voltage of a transformer or another type of electrical machine, which is induced by the primary voltage.