You are contemplating investing some surplus funds and the followingoptions 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 yearsWhich one of the above is the second-best option?
You are contemplating investing some surplus funds and the followingoptions 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 yearsWhich one of the above is the second-best option?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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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