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Which of the following investments will have the highest future value at the end of 5 years?  Assume that the effective annual rate for all investments is the same. A pays Php 50 at the end of every 6-month period for the next 5 years (a total of 10 payments). B pays Php 50 at the beginning of every 6-month period for the next 5 years (a total of 10 payments). C pays Php 500 at the end of 5 years (a total of one payment). D pays Php 100 at the end of every year for the next 5 years (a total of 5 payments). E pays Php 100 at the beginning of every year for the next 5 years (a total of 5 payments).

Which of the following investments will have the highest future value at the end of 5 years?  Assume that the effective annual rate for all investments is the same. A pays Php 50 at the end of every 6-month period for the next 5 years (a total of 10 payments). B pays Php 50 at the beginning of every 6-month period for the next 5 years (a total of 10 payments). C pays Php 500 at the end of 5 years (a total of one payment). D pays Php 100 at the end of every year for the next 5 years (a total of 5 payments). E pays Php 100 at the beginning of every year for the next 5 years (a total of 5 payments).

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Which of the following investments will have the highest future value at the end of 5 years?  Assume that the effective annual rate for all investments is the same.

  1. A pays Php 50 at the end of every 6-month period for the next 5 years (a total of 10 payments).
  2. B pays Php 50 at the beginning of every 6-month period for the next 5 years (a total of 10 payments).
  3. C pays Php 500 at the end of 5 years (a total of one payment).
  4. D pays Php 100 at the end of every year for the next 5 years (a total of 5 payments).
  5. E pays Php 100 at the beginning of every year for the next 5 years (a total of 5 payments).
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