Barbara has a sum of money to invest. She has two options. One offers a 24% rate compounded yearly where no interest is given for a fraction of a year. The other offers a 12% rate compounded monthly. If, unexpectedly, she had to retrieve her money after exactly 23 months, which option would be more profitable?
Barbara has a sum of money to invest. She has two options. One offers a 24% rate compounded yearly where no interest is given for a fraction of a year. The other offers a 12% rate compounded monthly. If, unexpectedly, she had to retrieve her money after exactly 23 months, which option would be more profitable?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Barbara has a sum of money to invest. She has two options. One offers a 24% rate compounded yearly where no interest is given for a fraction of a year. The other offers a 12% rate compounded monthly. If, unexpectedly, she had to retrieve her money after exactly 23 months, which option would be more profitable?
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