You are contemplating investing some surplus funds and the following options are available: Invest $50,000 @ 4% p.a. compounded annually for 5 years. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years. Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years. Which one of the above is the Second-best option? and why?
You are contemplating investing some surplus funds and the following options are available: Invest $50,000 @ 4% p.a. compounded annually for 5 years. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years. Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years. Which one of the above is the Second-best option? and why?
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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You are contemplating investing some surplus funds and the following options are available:
- Invest $50,000 @ 4% p.a. compounded annually for 5 years.
- Invest $45,000 @ 3% p.a. compounded quarterly for 5 years.
- Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years.
- Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years.
Which one of the above is the Second-best option? and why?
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