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1 . Which of the following investments will have the highest future value? A . $ 1 , 3 0 0 invested at an annual
Which of the following investments will have the highest future value?
A $ invested at an annual interest rate of compounded quarterly for years
B $ invested at an annual interest rate of compounded semiannually for years
C $ invested at an annual interest rate of compounded annually for years
D $ invested at an annual interest rate of compounded continuously for years Your firm has earnings of $ share. Over years earnings will increase to $ What is the earnings growth rate?
Round to the nearest percent.
A
B
C
D For two years months you deposit $ at the beginning of each month. After years you $ in your account. If
the bank compounds interest monthly, what annual interest rate will you have earned multiply the monthly rate by to
get the annual rate
A
B
C
D Which of the following is true of the future value of an investment?
A The lower the interest rate, the higher the future value of an investment.
B The lower the present value of an investment, the higher the future value of an investment.
C The higher the interest rate, the higher the future value of an investment.
D The lower the number of compounding periods, the higher the future value of an investment.
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