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Computing Future Value of Single Amount with Changes in Compounding Periods
Vision Inc. is considering the following investment opportunities.
Required
a. Compute the future value under each of the investment options.
- Round answers to the nearest whole dollar.
- Do not use a negative sign with your answers.
| Investment | Compounding | Annual Interest Rate | Cost | Term (years) | Future Value |
| Investment A | Annually | 6% | $240,000 | 10 | |
| Investment B | Semiannually | 6% | 240,000 | 10 | |
| Investment C | Quarterly | 6% | 240,000 | 10 | |
| Investment D | Monthly | 6% | 240,000 | 10 | |
b. Which option is preferable? AnswerInvestment AInvestment BInvestment CInvestment D
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