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:

Recessive Gene

A recessive gene is one whose effects are masked in the presence of a dominant gene, and thus, its traits are only expressed in a homozygous state.

Dominant Gene

a gene that suppresses the expression of its allele, resulting in its trait being manifested in the organism.

Brown Eyes

A physical trait characterized by the presence of melanin in the iris, resulting in a brown coloration of the eyes.

Dominant-Recessive Genes Principle

A genetic principle in which the dominant allele masks the effect of a recessive allele in heterozygous pairs.