Question

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

Answer 1

Option A has a PV of $4728.63.

AND

Option A has a lower PV than Option B.

Explanation:

You just gotta live it man. We're all gonna make it bros.