A person wants to invest $13,000 for 2 years and is considering two different investments. The first investment, a money market fund, pays a guaranteed 6.2% interest compounded daily. The second investment, a treasury note, pays 6.3% annual interest. Which investment pays the most interest over the 2-year period? Select the correct choice below and, if necessary, fill in any answer box(es) to complete your choice. (Do not round until the final answer. Then round to the nearest cent as needed.) OA. The market fund is the better investment, since the market fund produces S in interest, and the treasury note pays $ in interest. OB. Both the market fund and the treasury note produce the same interest with $ OC. The treasury note is the better investment, since the market fund produces S and the treasury note pays $ in interest. in interest,
A person wants to invest $13,000 for 2 years and is considering two different investments. The first investment, a money market fund, pays a guaranteed 6.2% interest compounded daily. The second investment, a treasury note, pays 6.3% annual interest. Which investment pays the most interest over the 2-year period? Select the correct choice below and, if necessary, fill in any answer box(es) to complete your choice. (Do not round until the final answer. Then round to the nearest cent as needed.) OA. The market fund is the better investment, since the market fund produces S in interest, and the treasury note pays $ in interest. OB. Both the market fund and the treasury note produce the same interest with $ OC. The treasury note is the better investment, since the market fund produces S and the treasury note pays $ in interest. in interest,
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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Transcribed Image Text:A person wants to invest $13,000 for 2 years and is considering two different investments. The
first investment, a money market fund, pays a guaranteed 6.2% interest compounded daily. The
second investment, a treasury note, pays 6.3% annual interest. Which investment pays the most
interest over the 2-year period?
Select the correct choice below and, if necessary, fill in any answer box(es) to complete your choice.
(Do not round until the final answer. Then round to the nearest cent as needed.)
A. The market fund is the better investment, since the market fund produces S in interest,
and the treasury note pays $ in interest.
OB. Both the market fund and the treasury note produce the same interest with $
OC. The treasury note is the better investment, since the market fund produces $
and the treasury note pays $ in interest.
in interest,
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