You are comparing four different investments,as described below: Investment A: Pays 12%,compounded annually
Investment B: Pays 12%,compounded quarterly
Investment C: Pays 12%,compounded semi-annually
Investment D: Pays 12%,compounded continuously
Which of the above investments would result in the highest future value?
A) Investment A
B) Investment B
C) Investment C
D) Investment D
E) All of the investments would have the same future value since the stated interest rate is the same.
Correct Answer:
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