Which Investment Will Have the Highest Future Value at the End

question 34

Multiple Choice

Which investment will have the highest future value at the end of 10 years? Assume that the effective annual rate for all investments is the same.

• A)Investment A pays $250 at the beginning of every year for the next 10 years (a total of 10 payments).
• B)Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments).
• C)Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments).
• D)Investment D pays $2,500 at the end of 10 years (a total of one payment).

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Definitions:

Cisterna Chyli

A dilated sac at the lower end of the thoracic duct into which lymph from the intestinal trunk and two lumbar lymphatic trunks flows.

Cardiovascular System

The body's system comprising the heart and blood vessels, responsible for circulating blood to deliver oxygen and nutrients to tissues.

Thoracic Duct

The largest lymphatic vessel in the human body that drains lymph from the lower and left side of the body into the venous system.

Thymus Gland

A lymphoid organ situated in the neck which produces T-cells for the immune system, particularly active during childhood.