Multiple Choice
Scenario: Consider the following two options. You can either invest $30,000 in a bank that offers you an interest rate of 6 percent compounded annually for 30 years, or you can lend $30,000 to your friend for 30 years at an interest rate of 10 percent compounded annually.
-Refer to the scenario above.Which of the following is true?
A) Investing in the bank will provide you a return of $3,521,725.
B) Investing in the bank is comparatively more profitable for you.
C) Lending to your friend is comparatively more profitable for you.
D) You will receive $563,987.92 from your friend after 30 years.
Correct Answer:
Verified
Correct Answer:
Verified
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