$5,000 invested at an annual rate of 6% for 3 years has a smaller future value than $5,000 invested at an annual rate of 3% for 6 years.

Name: $5,000 invested at an annual rate of 6% for 3 years has a smaller future value than $5,000 invested at an annual rate of 3% for 6 years.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because the longer duration of the investment period compensates for the lower interest rate in the second option.

$5,000 Invested at an Annual Rate of 6% for 3