Which Set of Payments Is the Most Valuable Given 12

question 101

Multiple Choice

Which set of payments is the most valuable given 12% APR interest?

• A)$100.00 received monthly for the next 12 months
• B)$300.00 received quarterly for the next four quarters
• C)$600.00 received semi-annually for the next two semi-annual periods
• D)$1,200.00 received one year from today

---

Definitions:

Unrealised Profit

Profit that has been generated but not yet realized through a transaction, such as an increase in value of an investment that has not yet been sold for cash.

Opening Inventory

The value of a company's inventory at the beginning of an accounting period, which is carried over from the end of the previous period.

Tax Effect

The impact of tax laws and regulations on an individual's or company's financial decisions and situations, including the calculation of tax liabilities.