hich do you prefer: a bank account that pays 10% per year (EAR) for 3 years or An account that pays 5.0% every 6 months for 3 years? An account that pays 15.0% every 18 months for 3 years? An account that pays 1.0% per month for 3 years? An account that pays 5.0% every 6 months for 3 years? you deposit $1 into a bank account that pays 10% per year for 3 years, the amount you will receive after 3 years is $ (Round to five decim you deposit $1 into a bank account that pays 5.0% every 6 months for 3 years, the amount you will receive after 3 years is $. (Round to five herefore, you will prefer (Select from the drop-down menu.) An account that pays 15.0% every 18 months for 3 years? you deposit $1 into a bank account that pays 15.0% every 18 months for 3 years, the amount you will receive after 3 years is $ herefore, you will prefer (Select from the drop-down menu.) (Round to
hich do you prefer: a bank account that pays 10% per year (EAR) for 3 years or An account that pays 5.0% every 6 months for 3 years? An account that pays 15.0% every 18 months for 3 years? An account that pays 1.0% per month for 3 years? An account that pays 5.0% every 6 months for 3 years? you deposit $1 into a bank account that pays 10% per year for 3 years, the amount you will receive after 3 years is $ (Round to five decim you deposit $1 into a bank account that pays 5.0% every 6 months for 3 years, the amount you will receive after 3 years is $. (Round to five herefore, you will prefer (Select from the drop-down menu.) An account that pays 15.0% every 18 months for 3 years? you deposit $1 into a bank account that pays 15.0% every 18 months for 3 years, the amount you will receive after 3 years is $ herefore, you will prefer (Select from the drop-down menu.) (Round to
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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Transcribed Image Text:Which do you prefer: a bank account that pays 10% per year (EAR) for 3 years or
a. An account that pays 5.0% every 6 months for 3 years?
b. An account that pays 15.0% every 18 months for 3 years?
c. An account that pays 1.0% per month for 3 years?
a. An account that pays 5.0% every 6 months for 3 years?
If you deposit $1 into a bank account that pays 10% per year for 3 years, the amount you will receive after 3 years is $
If you deposit $1 into a bank account that pays 5.0% every 6 months for 3 years, the amount you will receive after 3 years is $
(Select from the drop-down menu.)
(Round to five decimal places.)
Therefore, you will prefer
b. An account that pays 15.0% every 18 months for 3 years?
If you deposit $1 into a bank account that pays 15.0% every 18 months for 3 years, the amount you will receive after 3 years is $
Therefore, you will prefer
(Select from the drop-down menu.)
c. An account that pays 1.0% per month for 3 years?
If you deposit $1 into a bank account that pays 1.0% every month for 3 years, the amount you will receive after 3 years is $
Therefore, you will prefer
(Select from the drop-down menu.)
(Round to five decimal places.)
(Round to five decimal places.)
(Round to five decimal places.)
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