You have $1000 to invest,, and you have two options: Option A: 1.725% compounded semiannually Option B: 1.675% compounded continuously. (a) Calculate the annual percentage yield for each option. (Round your answers to three decimal places.) Option A % Option B % Which is the better option? O Option A O Option B (b) Calculate the future value of each investment after 2 years and after 5 years. (Round your answers to two decimal places.) Years Option A Option B $ 2 $ $ Does your choice of option depend on the number of years you leave the money invested? O Yes How much money would you have to invest today at 6% APR compounded monthly to accumulate the sum of $250,000 in 30 years? (Round your answer to two decimal places.)

Question
You have $1000 to invest,, and you have two options:
Option A: 1.725% compounded semiannually
Option B: 1.675% compounded continuously.
(a) Calculate the annual percentage yield for each option. (Round your answers to three decimal places.)
Option A
%
Option B
%
Which is the better option?
O Option A
O Option B
(b) Calculate the future value of each investment after 2 years and after 5 years. (Round your answers to two decimal places.)
Years
Option A
Option B
$
2
$
$
Does your choice of option depend on the number of years you leave the money invested?
O Yes

Image Transcription

You have $1000 to invest,, and you have two options: Option A: 1.725% compounded semiannually Option B: 1.675% compounded continuously. (a) Calculate the annual percentage yield for each option. (Round your answers to three decimal places.) Option A % Option B % Which is the better option? O Option A O Option B (b) Calculate the future value of each investment after 2 years and after 5 years. (Round your answers to two decimal places.) Years Option A Option B $ 2 $ $ Does your choice of option depend on the number of years you leave the money invested? O Yes

How much money would you have to invest today at 6% APR compounded monthly to accumulate the sum of $250,000 in 30 years? (Round your answer to two decimal places.)

Image Transcription

How much money would you have to invest today at 6% APR compounded monthly to accumulate the sum of $250,000 in 30 years? (Round your answer to two decimal places.)

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Math
Calculus