At the End of 10 Years, Which of the Following

question 21

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:

American Psychological Society

A professional organization dedicated to advancing the science and practice of psychology in the United States.

G. Stanley Hall

An American psychologist and educator, known as a pioneer in the study of child development and in the establishment of educational psychology.

Interacting Factors

Elements or conditions that affect each other's presence or intensity, often contributing to the complexity of outcomes in studies or real-life scenarios.

Behaviour

The way an individual or system behaves or responds to external or internal triggers.