Which of the Following Investments Would Have the Lowest Present

question 77

Multiple Choice

Which of the following investments would have the lowest present value? Assume that the effective annual rate for all investments is the same and is greater than zero.

• A) Investment A pays $250 at the end 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 beginning of every year for the next 10 years (a total of 10 payments).

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Definitions:

Diversity

The inclusion of individuals from various backgrounds, cultures, races, genders, and sexual orientations, enriching a group or community environment.

Types of Diversity

Refers to the variety of differences among people in an organization or society, including cultural, racial, gender, age, and other dimensions.

Psychological Safety

The belief that one can speak up, take risks, and be creative without fear of punishment or embarrassment in a group setting.

Interpersonal Trust

The degree to which one person believes in and is willing to rely on the integrity, character, and capabilities of another.