Which of the following investments would have the lowest, Ask an Expert

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Which of the following investments would have the 'lowest' present value? Assume that the effective annual rate for all investments is the same and is greater than zero.

Question options:

a) Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments).

b) Investment E pays $250 at the beginning of every year for the next 10 years (a total of 10 payments).

c) Investment B pays $125 at the end 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 (just one payment).

e) Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments).

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Category:- Basic Finance
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