Which investment 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) .
Correct Answer:
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