Which of the following investments will have the highest future value at the end of three years?

Question:

Which of the following investments will have the highest at the end of three years? Assume that the effective annual rate for all investments is the same.
a. You earn $3,000 at the end of three years (a total of one payment).
b. You earn $1,000 at the end of every year for the next three years (a total of three payments).
c. You earn $1,000 at the beginning of every year for the next three years (a total of three payments).

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...