You have $1000 to invest, and you have two options:Option A: 1.725% compounded semiannuallyOption B: 1.675% compounded continuously.(a) Calculate the annual percentage yield for each option. (Round your answers to three decimal places.)Option AOption B%Which is the better option?O Option AOption B(b) Calculate the future value of each investment after 2 years and after 5 years. (Round your answers to two decimal places.)Option AOption BYears1034.941034.06XX21089.671087.35XXDoes your choice of option depend on the number of years you leave the money invested?Yes

Calculate the annual percentage yield as follows:Option A:

Answered: You have $1000 to invest, and you have…

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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