Suppose that you have access to an investment account that pays 8% annual interest, compounded annually. You are conside
Posted: Sun Jun 05, 2022 6:54 am
Suppose that you have access to an investment account that pays
8% annual interest, compounded annually. You are considering the
following investment strategies, and you wish to choose the one
that will have the highest future value seven years from today (at
the end of Year 7). Which should you choose?
A. $9,000 deposited at the end of each of the next seven years
(Years 1 through 7)
B. $20,000 deposited at the end of the second, third, and fourth
years (Years 2 through 4)
C. A lump sum of $60,500 deposited three years from today (the
end of Year 3)
8% annual interest, compounded annually. You are considering the
following investment strategies, and you wish to choose the one
that will have the highest future value seven years from today (at
the end of Year 7). Which should you choose?
A. $9,000 deposited at the end of each of the next seven years
(Years 1 through 7)
B. $20,000 deposited at the end of the second, third, and fourth
years (Years 2 through 4)
C. A lump sum of $60,500 deposited three years from today (the
end of Year 3)