All computations must be done and shown manually Question 2 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. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 years Which one of the above is the second-best option?

All computations must be done and shown manually Question 2 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. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 years Which one of the above is the second-best option?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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You are contemplating investing some surplus funds and the followingoptions are available: Show manual computation1. Invest $50,000 @ 4% p.a. compounded annually for 5 years.2. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years.3. Invest $40,000 @ 4.5% p.a. compounded semi-annually for 5 years.4. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years.5. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 yearsWhich one of the above is the second-best option?
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 followingoptions are available:1. Invest $50,000 @ 4% p.a. compounded annually for 5 years.2. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years.3. Invest $40,000 @ 4.5% p.a. compounded semi-annually for 5 years.4. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years.5. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 yearsWhich one of the above is the second-best option?
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