You are contemplating investing some surplus funds and the following options are available: 1 . Invest $50,000. @ 4% p . a . compounded annually for 5 years. 2 . Invest $45,000. @ 3% p . a . compounded quarterly for 5 years. 3 . Invest $40,000. @ 4.5% p . a . compounded semi - annually for 5 years. 4 . Invest $50,000. @ 3% p . a . compounded semi - annually for 5 years. 5 . Invest $55,000. @ 0.5% p . a . compounded weekly for 5 years. Which one of the above is the second - best option?
You are contemplating investing some surplus funds and the following options are available: 1 . Invest $50,000. @ 4% p . a . compounded annually for 5 years. 2 . Invest $45,000. @ 3% p . a . compounded quarterly for 5 years. 3 . Invest $40,000. @ 4.5% p . a . compounded semi - annually for 5 years. 4 . Invest $50,000. @ 3% p . a . compounded semi - annually for 5 years. 5 . Invest $55,000. @ 0.5% p . a . compounded weekly for 5 years. Which one of the above is the second - best option?
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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You are contemplating investing some surplus funds and the following options are available:
1 . Invest $50,000. @ 4% p . a . compounded annually for 5 years.
2 . Invest $45,000. @ 3% p . a . compounded quarterly for 5 years.
3 . Invest $40,000. @ 4.5% p . a . compounded semi - annually for 5 years.
4 . Invest $50,000. @ 3% p . a . compounded semi - annually for 5 years.
5 . Invest $55,000. @ 0.5% p . a . compounded weekly for 5 years.
Which one of the above is the second - best option?
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