hsport funny african pics mybsu fierceninja LinkedIn Mr. Nailor invests s5. Principles of Finance Spring 2017 Section 002-11am
Discipline: Finance
Type of Paper: Question-Answer
Academic Level: Undergrad. (yrs 3-4)
Paper Format: APA
Pages: 1
Words: 275
Question
hsport funny
african pics mybsu fierceninja LinkedIn Mr. Nailor invests s5.
Principles of Finance Spring 2017 Section 002-11am FINANCE Chap 9.10
Question 26 (of 40) v saves Ext Mr. Nailor invests $5,000 in a money
market account at his local bank. He receives annual interest
of8%compounded for four years. How much total return will his imvestment
eam during this tme period? O $3675 O $1,800 O $6.254 O $8.57o
Expert Answer
The value of the investment after four years = PV x (1 + r)^n = 5,000 x (1 + 8%)^4 = $6802
Hence, his investment earned = 6802 - 5000 = 1802
Hence, B.