Which of the Following Investments Would Have the Highest Future

question 61

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 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).

Identify and define core concepts in research methodology, such as hypotheses, variables, and control groups.

Recognize the importance and characteristics of various research designs in psychology, including case studies, longitudinal studies, and experimental studies.

Understand the significance of internal and external validity in evaluating the quality and applicability of research findings.

Appreciate the role and limitations of case studies in psychological research.

---

Definitions:

Interaction

In experimental design and statistics, refers to a situation where the effect of one variable depends on the level of another variable.

Factorial Experiment

An experimental setup that investigates the effects of multiple factors by varying them simultaneously and systematically, to analyze their interactions and single effects.

Two-way Factor ANOVA

A statistical test used to determine the effect of two nominal predictor variables on a continuous outcome variable.

Interact

To act in such a way as to have an effect on another; in statistical terms, it often refers to variables that affect each other’s outcomes.