You Are Comparing Four Different Investments,as Described Below: Investment A

question 90

Multiple Choice

You are comparing four different investments,as described below: Investment A: Pays 12%,compounded annually
Investment B: Pays 12%,compounded quarterly
Investment C: Pays 12%,compounded semi-annually
Investment D: Pays 12%,compounded continuously
Which of the above investments would result in the highest future value?

• A) Investment A
• B) Investment B
• C) Investment C
• D) Investment D
• E) All of the investments would have the same future value since the stated interest rate is the same.

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