A pair of investments have identical future values of $15,000
with 15-
year maturities....
Mathematics, 21.10.2020 04:01 theresamarieuehling2
A pair of investments have identical future values of $15,000
with 15-
year maturities. Option A has an 8%
interest rate compounded annually. Option B has a 10%
simple interest rate.
Which statements are true about the present values of the investments?
Option A has a PV of $4728.63.
$
4728.63
.
Option A has a PV of
Option B has a lower PV than Option A.
Option B has a lower PV than Option A.
Option A has a PV of $6818.18.
$
6818.18
.
Option A has a PV of
Option A has a lower PV than Option B
Answers: 2
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