You want to deposit your savings for a year and you have the choice of three accounts. The first pays 5% interest per annum, compounded yearly. The second pays 4.8% interest per annum, compounded twice a year. The third pays 4.9% interest per annum, compounded continuously. Which one should you choose?

You want to deposit your savings for a year and you have the choice of three accounts. The first pays 5% interest per annum, compounded yearly. The second pays 4.8% interest per annum, compounded twice a year. The third pays 4.9% interest per annum, compounded continuously. Which one should you choose?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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