At the end of 10 years, which of the following investments would have the highest future value? Assume that the effective annual rate for all investments is the same and is greater than zero.

A. Investment A pays $250 at the beginning of every year for the next 10 years (a total of 10 payments).
B. Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments).
C. Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments).
D. Investment D pays $2,500 at the end of 10 years (just one payment).
E. Investment E pays $250 at the end of every year for the next 10 years (a total of 10 payments).


Answer: A

Business

You might also like to view...

Use consistent ________________ to indicate changes or corrections to text

a. record keeping b. sentences c. proofreading symbols d. timing

Business

In the basic EOQ model, the optimal inventory level is the point at which

A) total revenue is maximized. B) carrying costs are minimized. C) ordering costs are minimized. D) total cost is minimized.

Business

What steps should one take to ensure effectiveness as the sender in a communication process?

What will be an ideal response?

Business

Bottom line is that cars are expensive. They are expensive to insure, maintain, finance and what?

A) Wash B) Buy C) Rent D) Lease E) Borrow

Business