Susan Bertrees can invest $12,000 at 2% interest compounded twice a year or compounded quarterly. If either investment is for 5 years, which investment results in more interest? How much more interest is yielded by the better investment? Select one: a. $3.28 more when compounding quarterly b. $0.00; no difference between the two c. $3.28 more when compounding semi-annually d. $2400 when compounding quarterly
Susan Bertrees can invest $12,000 at 2% interest compounded twice a year or compounded quarterly. If either investment is for 5 years, which investment results in more interest? How much more interest is yielded by the better investment? Select one: a. $3.28 more when compounding quarterly b. $0.00; no difference between the two c. $3.28 more when compounding semi-annually d. $2400 when compounding quarterly
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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Susan Bertrees can invest $12,000 at 2% interest compounded twice a year or compounded quarterly. If either investment is for 5 years, which investment results in more interest? How much more interest is yielded by the better investment?
Select one:
a.
$3.28 more when compounding quarterly
b.
$0.00; no difference between the two
c.
$3.28 more when compounding semi-annually
d.
$2400 when compounding quarterly
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