At the end of 10 years, which of the following investments would have the highest future value?
Question:
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.
Group of answer choices
a. Investment A pays $250 at the beginning of every year for the next 10 years (a total of 10 payments).
b. Investment D pays $2,500 at the end of 10 years (just one payment).
c. Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments).
d. Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments).
e. Investment E pays $250 at the end of every year for the next 10 years (a total of 10 payments).
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen