Which of the following investments will have the highest future value?
A) $1,300 invested at an annual interest rate of 10% for 5 years
B) $1,000 invested at an quarterly interest rate of 2.25% for 10 years
C) $1,300 invested at an quarterly interest rate of 2.25% for 5 years
D) $1,000 invested at an annual interest rate of 10% for 10 years

Question

Quizplus · Accepted Answer

Option D will have the highest future value due to the combination of a high annual interest rate (10%) and a longer compounding period (10 years). This allows the investment to benefit significantly from compound interest over time, outpacing the other options despite some having higher initial investments or more frequent compounding periods.

Which of the Following Investments Will Have the Highest Future