Barbara has a sum of money to invest. She has two options. One offers a 24% rate compounded yearly where no interest is given for a fraction of a year. The other offers a 12% rate compounded monthly. If, unexpectedly, she had to retrieve her money after exactly 23 months, which option would be more profitable?
Barbara has a sum of money to invest. She has two options. One offers a 24% rate compounded yearly where no interest is given for a fraction of a year. The other offers a 12% rate compounded monthly. If, unexpectedly, she had to retrieve her money after exactly 23 months, which option would be more profitable?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Barbara has a sum of money to invest. She has two options. One offers a 24% rate compounded yearly where no interest is given for a fraction of a year. The other offers a 12% rate compounded monthly. If, unexpectedly, she had to retrieve her money after exactly 23 months, which option would be more profitable?
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