Which investments would have the highest future value

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Problem 1: At the end of 10 years, which of the following investments would have the highest future value? Assume that the effective annual rate for all investments is the same and is greater than zero.

Option 1:
Investment E pays P250 at the end of every year for the next 10 years (a total of 10 payments).

Option 2:
Investment A pays P250 at the beginning of every year for the next 10 years (a total of 10 payments).

Option 3:
Investment C pays P125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments).

Option 4:
Investment B pays P125 at the end of every 6-month period for the next 10 years (a total of 20 payments).

Option 5:
Investment D pays P2,500 at the end of 10 years (just one payment).

Reference no: EM132815405

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