Answer:
option 2
Step-by-step explanation:
The answer is 2
------------------------
1/12 of a pound.
you must use the reciprocal of 4, 1/4, then multiply. so 1/3*1/4= 1/12
The present value of the investment is $6000.
According to the statement
Principal amount = $500
and Return amount = 10.5%
Time period = 20 years.
Now we find the present value of money then
By the formula
PV = P[1-(1+r)^n]/r
PV = 500[1-(1+0.10)^20]/0.10
PV = 6000
So, The present value of the investment is $6000.
Learn more about Return Amount here brainly.com/question/2456547
#SPJ1