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.

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Definitions:

Enantiomers

Molecules that are mirror images of each other and cannot be superimposed, similar to a pair of hands.

Diastereomers

Stereoisomers that are not mirror images of each other nor superimposable, having multiple chiral centers.

Diastereomer

Stereoisomers that are not mirror images of each other, differing in the orientation of substituents around one or more stereocenters.

Diastereomers

Stereoisomers that are not mirror images of each other, differing in the configuration at one or more (but not all) of the chiral centers in molecules.