23. Sara is investing $1,000 today. Which one of the following will increase the

Question

23.          Sara is investing $1,000 today. Which one of the following will increase the future value of that amount?

A.            Shortening the investment time period.

B.            Paying interest only on the principal amount.

C.            Paying simple interest rather than compound interest.

D.            Paying interest only at the end of the investment period rather than throughout the investment period.

E.            Increasing the interest rate.

24.          Lisa has $1,000 in cash today. Which one of the following investment options is most apt to double her money?

A.            6 percent interest for 3 years

B.            12 percent interest for 5 years

C.            7 percent interest for 9 years

D.            8 percent interest for 9 years

E.            6 percent interest for 10 years

Explanation / Answer

Hello,

23. E, increasing the interest rate.

Example

5% 1,000 * 1.05 = 1,050

10% 1,000 * 1.10 = 1.100

24. D, because 8 * 9 = 72. This deals with the rule of 72, which is related to how long it takes to double your money.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.