Which of the following investment alternatives would provide the greatest ending wealth for your investment if you are thinking of opening a savings account?  Record the return with the highest EAR. (Rounded to two decimal places). -9.5 % compounded daily -9.00% compounded semi-annually -9.25% compounded quarterly -9.40% compounded quarterly -9.75% compounded daily   Scotia Bank Ltd. promises to pay 2.75% in the first year, 3.25% in the second year, 3.75% in the third year, and 4.00% in the fourth and final year if you make an investment of $15,000 in this promotion and hold it to maturity.  What will be your total investment at the end of the four years   Assume that the interest rate is greater than zero. Which of the following cash-inflow streams totaling $1,500 would you prefer? The cash flows are listed on order for year 1, year 2 and year 3 respectively.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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Which of the following investment alternatives would provide the greatest ending wealth for your investment if you are thinking of opening a savings account?  Record the return with the highest EAR. (Rounded to two decimal places).

-9.5 % compounded daily

-9.00% compounded semi-annually

-9.25% compounded quarterly

-9.40% compounded quarterly

-9.75% compounded daily

 

Scotia Bank Ltd. promises to pay 2.75% in the first year, 3.25% in the second year, 3.75% in the third year, and 4.00% in the fourth and final year if you make an investment of $15,000 in this promotion and hold it to maturity.  What will be your total investment at the end of the four years

 

Assume that the interest rate is greater than zero. Which of the following cash-inflow streams totaling $1,500 would you prefer? The cash flows are listed on order for year 1, year 2 and year 3 respectively.
 
a.
$700; $500; $ 300
b.
Any OF the above since they all sum to $1,500
c.
$500; $500; $ 500
d.
$300; $500; $ 700
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