Which of the two plans it would suit you plus?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Bank International of Coast delicious you offers a you the following plans of saving for three years:
- To deposit ¢300 00 each six months a a rate of 14 % annual, payable semi-annually.
- To deposit ¢150 00 each three months a a rate of 12 % annual, payable quarterly basis.
- Which of the two plans it would suit you plus?
Expert Solution
Step 1
It has been given in the question that the deposit is to be for the years of only three years. So, only that option among the plans of deposits should be chosen which are having the excess of amount or higher amount at the end.
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