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Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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![Suppose you have $5,000 to invest for the next 40 years. You are given 3 choices on where to invest your money.
Account #1
12.20% compounded weekly
Account #2
12.18% compounded daily
12.16% compounded continuously
Account #3
Calculate the APR (assume P-$100, t=1 year) for each account. Round to 2 decimal places, in percent form.
APR
Account #1
%
Account #2
%
Account #3
%
SHOW WORK BELOW:
Based on your calculations, which account will you invest your $5,000? Why? How much money will you have after 40
years in the account that you have chosen? How much in total interest will you gain? In other words, from $5,000, by how
much did your money increase?](https://content.bartleby.com/qna-images/question/8ed644d6-e229-4362-a96d-6f1cff714dac/ebb1ce4f-52d8-42a6-8872-322b59234206/wx485q_thumbnail.png)
Transcribed Image Text:Suppose you have $5,000 to invest for the next 40 years. You are given 3 choices on where to invest your money.
Account #1
12.20% compounded weekly
Account #2
12.18% compounded daily
12.16% compounded continuously
Account #3
Calculate the APR (assume P-$100, t=1 year) for each account. Round to 2 decimal places, in percent form.
APR
Account #1
%
Account #2
%
Account #3
%
SHOW WORK BELOW:
Based on your calculations, which account will you invest your $5,000? Why? How much money will you have after 40
years in the account that you have chosen? How much in total interest will you gain? In other words, from $5,000, by how
much did your money increase?
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