Millie has inherited $4500 and has the choice between two options to invest her money. The first option will compound the interest quarterly at 4.5%. She will be able to retrieve the money after six years. The second option will compound the interest continuously at 6%. She will be able to retrieve the money after four years. How much money will be in each account by the time she can retrieve it? Which would be the better option for her to use
Millie has inherited $4500 and has the choice between two options to invest her money. The first option will compound the interest quarterly at 4.5%. She will be able to retrieve the money after six years. The second option will compound the interest continuously at 6%. She will be able to retrieve the money after four years. How much money will be in each account by the time she can retrieve it? Which would be the better option for her to use
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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Millie has inherited $4500 and has the choice between two options to invest her money. The first option will compound the interest quarterly at 4.5%. She will be able to retrieve the money after six years. The second option will compound the interest continuously at 6%. She will be able to retrieve the money after four years. How much money will be in each account by the time she can retrieve it? Which would be the better option for her to use?
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