INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

Short Answer

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
Natalie is faced with two savings choices: Making a single deposit of $5,000 or making five annual deposits of $1,000. The interest rate on both is 4%, compounded monthly. The [ lump sum deposit | annual deposits ] plan will result in a higher balance at the end of five years.