Al, Ralph, and Stan are all intending to retire. Each currently has $1 million in assets. Al will earn 16% interest and retire in two years. Ralph will earn 8% interest and retire in four years. Stan will earn 4% interest and retire in eight years. Who will have the largest sum when he retires?
a. Al
b. Ralph
c. Stan
d. They all retire with the same amount.
c
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Alt-A borrowers were those who
A) used mortgages to purchase apartments. B) chose adjustable-rate mortgages instead of fixed-rate mortgages. C) borrowed using "interest-only" mortgages. D) did not provide documentation of their income when applying for a mortgage.
A monopoly can block the entry of others
Indicate whether the statement is true or false
Virtual Currency Unit 3 (VCU3) poses a __________ risk to nations in which is it used because ___________________________
a. Low; it can be spent only in virtual worlds. b. Low; when converted into legal tender, it has no effect on a nation's M2 money supply or monetary base. c. Low; it does not have the potential to raise a nation's price level or threaten the nation's payment system. d. All of the above are true.
When a group of people stand to gain from an action that is not rational for any of the members to undertake individually, it is referred to as a:
A. moral hazard problem. B. collective-action problem. C. societal-wellbeing problem. D. free-rider problem.