Under Which of the Following Conditions Will a Future Value

question 100

Multiple Choice

Under which of the following conditions will a future value calculated with simple interest exceed a future value calculated with compound interest at the same rate?

• A) The interest rate is very high.
• B) The investment period is very long.
• C) The compounding is annually.
• D)This is not possible with positive interest rates.

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Definitions:

Overpaid Worker

An employee who receives compensation significantly above the market rate for their role or performance level.

Equity

The principle of fairness and justice in the distribution of benefits, resources, and responsibilities.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives to focus efforts and resources.

Performance Increases

Improvements in the efficiency, effectiveness, and quality of work or output by an individual or organization.