Investments will have the highest future value

Assignment Help Financial Management

Reference no: EM13725503

Which of the following investments 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).

Reference no: EM13725503

Questions Cloud

Corporate bond has an annual coupon : A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is INCORRECT?

Bonds would have the largest percentage increase in price : Assume that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the LARGEST percentage increase in price?

Should employers be permitted to discriminate : Should employers be permitted to discriminate based upon attractiveness

Certificate of deposit matures : Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures?

Investments will have the highest future value : Which of the following investments will have the HIGHEST FUTURE VALUE at the end of 10 years? Assume that the effective annual rate for all investments is the same.

Checking the background of potential employees : Discuss what duty or duties a business has with regard to checking the background of potential employees before hiring

This debt must be repaid in two equal instalments : Digital Organics (DO) has the opportunity to invest $0.98 million now (t = 0) and expects after-tax returns of $580,000 in t = 1 and $680,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 14% with all-equity f..

Financial position postion and statement of activities : Exhiibits 14-8 and 14-9 presents the statement of financial position postion and statement of activities and statements of activities for the disabled veterans (Day) charitable Service Trust. For both 2007 and 2006, calculate:common size ration..

What is the expected market value of a bond : What is the expected market value of a bond that has 5 years to maturity, a yield of 6.5% a coupon rate of 7.5%, a cost basis of 10354.18 and a fair market value of 10,000? The bond pays interest semi-annually.

User Account

All Pages