2. You invest $1, 000 in the beginning of a year and make no further deposits or withdrawals to and from this account. Find the balance at the end of the first year in each of the following cases:(a) the interest rate is an annual interest rate of 2.31%(b) the interest rate is a semi-annual interest rate of 2.31%(c) the interest rate is a quarterly interest rate of 2.31%.(d) Are the three interest rates above equivalent? Explain your answer.Which interest rate would you choose and why?

Question
Asked Feb 11, 2020
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2. You invest $1, 000 in the beginning of a year and make no further deposits or withdrawals to and from this account. Find the balance at the end of the first year in each of the following cases:

(a) the interest rate is an annual interest rate of 2.31%

(b) the interest rate is a semi-annual interest rate of 2.31%

(c) the interest rate is a quarterly interest rate of 2.31%.
(d) Are the three interest rates above equivalent? Explain your answer.

Which interest rate would you choose and why?

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Expert Answer

Given Information:

Algebra homework question answer, step 1, image 1

(a) Find the total amount at the end of first year.

Algebra homework question answer, step 2, image 1

(b) Find the balance amount with interest rate is a semi-annual interest rate of 2.31%.

Algebra homework question answer, step 3, image 1

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