Which of the following investments would have the highest future value at the end of 10 years? 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
You might also like to view...
Mandatory public reporting of financial information:
a. enhances the perceived fairness of the capital market. b. increases the total cost to society of obtaining the information. c. results in costs greater than benefits. d. requires companies to generate a lot of information that would not otherwise be produced by its accounting system.
Which of the following statements is true about reactions to change?
a. People will almost always be disconcerted by the prospect of change b. People will have strong responses to change based on the perceived consequences to them c. People will generally accept change that benefits the organization as a whole d. People will feel the same way about change that their peers do
A dummy activity in a PERT network allows us to:
Consider the following project. Activity Immediate Processor Activity Time (days) A - 6 B - 8 C A, B 5 D B 4 E C 7 F C, D 3 G D 6 H E, F, G 5 A) specify the positive time and resources required to complete the activity. B) maintain the precedence relationships. C) add more starting nodes. D) add more ending nodes.
The doctrine of __________ is the basis for an employer's liability for an unauthorized tort committed by an employee within the scope of employment
a. indemnification b. respondeat superior c. apparent authority d. direct liability