5,000 invested at an annual rate of 6 for 3 years has a smaller ...

[torybrooks]

5,000 invested at an annual rate of 6 for 3 years has a smaller future value than 5,000 invested at an annual rate of 3 for 6 years.
 
  Indicate whether the statement is true or false.

Question 2

In terms of risk, preferred stock is safer than common stock because it has a prior claim on assets
  and income.
 
  Indicate whether the statement is true or false

[apple]

Answer to Question 1

Answer: TRUE
Explanation: 5,000  (1.06)3 = 5,955.08, but 5,000  (1.03)6 = 5,970.26

Answer to Question 2

TRUE