Consider a Graph of Future Values of Two Investments of $1000

question 106

Multiple Choice

Consider a graph of future values of two investments of $1000. How would you expect the graphs of the future values to look if both investment 1 earns 15% compounded annually, and investment 2 earns 10% compounded annually?

• A) Investment 1 is steeper and the graph is growing at a faster rate.
• B) Investment 2 is steeper and the graph is growing at a faster rate.
• C) Investment 1 is steeper and the graph is growing at a slower rate.
• D) Investment 2 is steeper and the graph is growing at a slower rate.
• E) The two graphs look the same as they are both compounding interest.

---

Definitions:

Message Output

The final form or content of a message that is communicated to the recipient.

Message Input

The information or data sent by a user or system to another as part of communication.

Ethnocentric Reactions

These are responses based on the belief that one's own ethnic group or culture is superior to others.

Other Cultures

Refers to the customs, beliefs, arts, institutions, and all other products of human work and thought characteristic of a community or population different from one's own.