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:

Family Studies

An academic and research field focusing on the dynamics and relationships within family systems, including aspects of psychology, sociology, and human development.

Twin

One of a pair of siblings born at the same time from the same pregnancy, either identical (monozygotic) or fraternal (dizygotic).

Selective Breeding

The process of breeding plants or animals for specific genetic traits, aiming to produce offspring with desirable characteristics.

Fraternal Twin

Siblings who are born at the same time but developed from two separate eggs fertilized by two different sperm, genetically similar as typical siblings.