Which of the Following Investments Would Have the Highest Future

question 99

Multiple Choice

Which of the following investments would have the highest future value (in year 5) if the discount rate is 12%?

• A) A five year ordinary annuity of $100 per year.
• B) A five year annuity due of $100 per year.
• C) $700 to be received at year 5
• D) $500 to be received TODAY (year 0)

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Definitions:

Ejaculat/o

A term referring to the expulsion of semen from the male reproductive tract.

Balan/o

A combining form used in medical terms that relates to the glans penis.

Circum-

A prefix in medical terminology indicating "around" or "about."

Gynecomastia

The enlargement of the gland tissue of the male breast, which can result from a hormonal imbalance or certain medications.