5. To invest capital, a person has the following options: a） Fixed-term investment with interest of 21.5% compounded by semesters b） Certificates that pay 20.5% compounded each week. c） Bonuses that give you 20.68% earnings compounded by months. Assuming that they all offer the same liquidity, that is, they have equal chances of recovering the investment, which one should you decide?
5. To invest capital, a person has the following options: a） Fixed-term investment with interest of 21.5% compounded by semesters b） Certificates that pay 20.5% compounded each week. c） Bonuses that give you 20.68% earnings compounded by months. Assuming that they all offer the same liquidity, that is, they have equal chances of recovering the investment, which one should you decide?
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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5. To invest capital, a person has the following options:
a） Fixed-term investment with interest of 21.5% compounded by semesters
b） Certificates that pay 20.5% compounded each week.
c） Bonuses that give you 20.68% earnings compounded by months.
Assuming that they all offer the same liquidity, that is, they have equal chances of recovering the investment, which one should you decide?
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