An Investment Will Pay $289,940 at the End of Next

question 88

Multiple Choice

An investment will pay $289,940 at the end of next year for an investment of $190,000 at the start of the year. If the market interest rate is 9% over the same period, should this investment be made?

• A) No, because the investment will yield $82,840 less than putting the money in a bank.
• B) Yes, because the investment will yield $66,272 more than putting the money in a bank.
• C) Yes, because the investment will yield $74,556 more than putting the money in a bank.
• D) Yes, because the investment will yield $82,840 more than putting the money in a bank.

---

Definitions:

Pepsi Points

A loyalty program by PepsiCo where consumers collect points from product purchases that can be exchanged for rewards.

Plaintiff

A plaintiff is an individual or entity who initiates a lawsuit against another party, known as the defendant, in a court of law seeking remedial relief or damages.

Jet

A high-speed aircraft powered by jet engines that is capable of flight at speeds greater than the speed of sound.

Offeror Dies

In contract law, this refers to the scenario where the individual making an offer (offeror) passes away before the offer is accepted, potentially affecting the validity of the offer.