You have 30,000 to invest and want the greatest yield from your investment after five years. You have two plans to choose from: Plan A- 6.9%compouned monthly or Plan B- 7% compound quarterly (a) Which plan would you take to achieve this? (b) How much will you have at the end of five years?

You have 30,000 to invest and want the greatest yield from your investment after five years. You have two plans to choose from: Plan A- 6.9%compouned monthly or Plan B- 7% compound quarterly (a) Which plan would you take to achieve this? (b) How much will you have at the end of five years?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 9PROB

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Q)You have 30,000 to invest and want the greatest yield from your investment after five years.

You have two plans to choose from:

Plan A- 6.9%compouned monthly or Plan B- 7% compound quarterly

(a) Which plan would you take to achieve this?

(b) How much will you have at the end of five years?

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