Which of the following investments will have the HIGHEST FUTURE VALUE at the end of 10 years? Assume that the effective annual rate for all investments is the same.
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 (a total of one payment).

Question

Quizplus · Accepted Answer

Investment A will have the highest future value because it has the most frequent payments and the longest time period.

Which of the Following Investments Will Have the HIGHEST FUTURE