If the same two $15,000 deposits are made (at time 0 and end of year 4) into a differ account that earns a nominal annual interest rate of 8.4% compounded guarterly, in wb account should the money be deposited in order to earn more interest?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 36P
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b) If the same two $15,000 deposits are made (at time 0 and end of year 4) into a different
account that earns a nominal annual interest rate of 8.4% compounded quarterly, in which
account should the money be deposited in order to earn more interest?
Transcribed Image Text:b) If the same two $15,000 deposits are made (at time 0 and end of year 4) into a different account that earns a nominal annual interest rate of 8.4% compounded quarterly, in which account should the money be deposited in order to earn more interest?
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