continuously. Which investment yields the highest return after 20 years? What is the differenc in earnings between each investment?

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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There are three options for investing Php 50,000. The first earns 8% compounded
semiannually, the second earns 8% compounded monthly, and the third earns 8% compounded
continuously. Which investment yields the highest return after 20 years? What is the difference
in earnings between each investment?
Transcribed Image Text:There are three options for investing Php 50,000. The first earns 8% compounded semiannually, the second earns 8% compounded monthly, and the third earns 8% compounded continuously. Which investment yields the highest return after 20 years? What is the difference in earnings between each investment?
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