Arithmetic Ability
Compound Interest

48 / 134

Q.

Assume that money can be invested at 8% compounded quarterly,which is larger,$2500 now or $3800 in 5 years?

View Answer

Correct choice: B

Explanation:

First find the present value of $3800,then compare present values: M = p(1+i/4)^4n
48 / 134