Which of the Following Investments Would Have the highest Future

question 82

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).

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Definitions:

Dissociative Amnesia

A mental health disorder characterized by the inability to recall important personal information, usually after a traumatic or stressful event, that cannot be explained by ordinary forgetfulness.

Psychodynamic Therapy

A form of depth psychology, its primary focus is to reveal the unconscious content of a client's psyche in an effort to alleviate psychic tension.

Hypnotic Therapy

A treatment in which the patient undergoes hypnosis and is then guided to recall forgotten events or perform other therapeutic activities. Also known as hypnotherapy.

State-Dependent Learning

The phenomenon whereby information learned in a particular state of mind is more easily recalled when in that same state.