The table below gives the value of an investment of P dollars after 2 years in an account whose annual percentage yield is 100r%. The value of a $10,000 investment after 2 years can be modeled by
Find and interpret
when the annual interest rate is 4.3%.
A) $8.30 per percentage point; it represents how much money a $10,000 investment would earn if the interest rate increased by one percent.
B) $1,060.00 per percentage point; it represents how much money a $10,000 investment would earn if the interest rate increased by one percent.
C) $1,060.00 per percentage point; it represents the rate of increase in value of $10,000 investment as the interest rate increases by one percent.
D) $208.60 per percentage point; it represents the rate of increase in value of $10,000 investment as the interest rate increases by one percent.
E) $104.30 per percentage point; it represents how much money in the investment is due to the interest rate.
Correct Answer:
Verified
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