You have the option of four investments: 1. Investment A with an APR of 8% and compounds daily (assume 365 days in a year) 2. Investment B with an APR of 8% and compounds monthly 3. Investment C with an APR of 8.2% and compounds quarterly 4. Investment D with an APR of 8.4% and compounds annually If you want the investment with the highest return, which investment would you choose?

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
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You have the option of four investments:
1. Investment A with an APR of 8% and compounds daily (assume 365 days in a year)
2. Investment B with an APR of 8% and compounds monthly
3. Investment C with an APR of 8.2% and compounds quarterly
4. Investment D with an APR of 8.4% and compounds annually
If you want the investment with the highest return, which investment would you choose?
Investment A
O Investment D
Investment C
Investment B
Transcribed Image Text:You have the option of four investments: 1. Investment A with an APR of 8% and compounds daily (assume 365 days in a year) 2. Investment B with an APR of 8% and compounds monthly 3. Investment C with an APR of 8.2% and compounds quarterly 4. Investment D with an APR of 8.4% and compounds annually If you want the investment with the highest return, which investment would you choose? Investment A O Investment D Investment C Investment B
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