You Are Comparing Four Different Investments,as Described Below

question 87

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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Definitions:

New England

A region in the northeastern United States comprising six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

James II

was the King of England, Ireland, and Scotland from 1685 to 1688, whose reign ended with the Glorious Revolution due to his attempts to reinstitute Catholic dominance in England.

William and Mary

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