Multiple Choice
Consider the following formula for annual compound interest: F = P(1+I) N
F = Future Value
P = Principal
I = Interest rate
N = Number of Years
Which scenario would represent the largest return?
1) Invest $100 for 5 years at 6%
2) Invest $200 for 4 years at 5%
3) Invest $300 for 2 years at 5%
4) Invest $400 for 4 years at 2%
A) 1
B) 2
C) 3
D) 4
Correct Answer:
Verified
Correct Answer:
Verified
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