Multiple Choice
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 eyear for the next 10 years (a total of 10 payments) .
B) Investment B pays $125 at the end of e6-month period for the next 10 years (a total of 20 payments) .
C) Investment C pays $125 at the beginning of e6-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 eyear for the next 10 years (a total of 10 payments) .
Correct Answer:
Verified
Correct Answer:
Verified
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