Ridzuan is a finance student at a college. Recently, he has won RM 15,000 from a competition. He needs your advice on his investment options: Option A: Invest in a fund that pays 8% simple interest for 2 years. Option B: Invest in a fund that pays 6% compounded semi-annually for 2 years. Option C: Invest in a fund that pays 3% compounded fortnightly for 2 years. Question: You are required to calculate the accumulated sum from each option and to advice Ridzuan on the best option available.

Ridzuan is a finance student at a college. Recently, he has won RM 15,000 from a competition. He needs your advice on his investment options: Option A: Invest in a fund that pays 8% simple interest for 2 years. Option B: Invest in a fund that pays 6% compounded semi-annually for 2 years. Option C: Invest in a fund that pays 3% compounded fortnightly for 2 years. Question: You are required to calculate the accumulated sum from each option and to advice Ridzuan on the best option available.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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