Which of the Following Investments Has a Larger Future Value

question 66

Multiple Choice

Which of the following investments has a larger future value: A $100 investment earning 10% per year for 5 years or a $100 investment earning 5% per year for 10 years?

• A)An investment of $100 invested at 10% per year for 5 years because it has a future value of $161.05.
• B)An investment of $100 invested at 10% per year for 5 years because it has a future value of $162.89.
• C)An investment of $100 invested at 5% per year for 10 years because it has a future value of $161.05.
• D)An investment of $100 invested at 5% per year for 10 years because it has a future value of $162.89.

---

Definitions:

Example

A representative instance or illustration of a concept, situation, or practice, used for clarification or explanation.

Linear Optimization Models

Mathematical techniques used to achieve the best outcome, such as maximum profit or minimum cost, within a given set of linear constraints.

Basic Steps

Basic Steps typically refer to the foundational or initial procedures in a process or methodology, outlining the essential phases needed to achieve a particular goal or complete a project.

Linear Optimization Model

A mathematical technique used to find the best outcome, such as maximum profit or lowest cost, in a model whose requirements are represented by linear relationships.