At the End of 10 Years, Which of the Following

question 9

Multiple Choice

At the end of 10 years, which of the following investments would have the highest future value?Assume that the effective annual rate for all investments is the same and is greater than zero.

• 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 (just one payment).
• E) investment e pays $250 at the end of every year for the next 10 years (a total of 10 payments).

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Definitions:

Inventions

Original devices, methods, or processes developed from the creative mind that have never been made before, offering new solutions.

Idea

A thought or suggestion about a possible course of action, creative concept, or invention.

Opportunity

A set of circumstances that makes it possible to do something or for something to happen, often leading to potential benefits.

Alertness

Promptness in recognizing and reacting to new information or changes in the environment.