Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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You want to invest $19,000 and are looking for safe investment options. Your bank is offering a certificate of deposit that pays a nominal rate of 4.00% that is compounded quarterly. Your effective rate of return on this investment is .
Suppose you decide to deposit $19,000 into a savings account that pays a nominal rate of 5.20%, but interest is compounded daily. Based on a 365-day year, how much would you have in your account after nine months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.)
$19,160.48
$19,358.01
$19,753.07
$20,148.13
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