Mila will need $15 000 when she goes to college 5 years from now. She has 2 options for saving the money. Option A: A regular deposit at the end of each month into an account that earns 6.5% per year compounded monthly Option B: A regular deposit at the end of each year into an account that earns 7.1% per year compounded annually Which option should Mila choose? Make a recommendation, then justify it.
Mila will need $15 000 when she goes to college 5 years from now. She has 2 options for saving the money. Option A: A regular deposit at the end of each month into an account that earns 6.5% per year compounded monthly Option B: A regular deposit at the end of each year into an account that earns 7.1% per year compounded annually Which option should Mila choose? Make a recommendation, then justify it.
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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Mila will need $15 000 when she goes to college 5 years from now. She has 2 options for saving the money.
Option A: A regular deposit at the end of each month into an account that earns 6.5% per year compounded monthly
Option B: A regular deposit at the end of each year into an account that earns 7.1% per year compounded annually
Which option should Mila choose? Make a recommendation, then justify it.
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