a) 1.126^1 =
b) (1.062)^2 =
c) (1.0305)^4 =
d) (e)^.12 =
Which investment option will pay the most interest?
A. 12.6% compounded annually
B. 12.4% compounded semiannually
C. 12.2% compounded quarterly
D. 12.0% compounded continuously
E. These investments all pay the same amount of interest.
3 answers
Where did you get the values from?
Are you not studying compound interest?
e.g.
c) rate is 12.2 compounded quarterly,
so in (1+i)^n
i = .122/4 = .0305
n = 4
so (1+.0305)^4 = 1.0305)^4
e.g.
c) rate is 12.2 compounded quarterly,
so in (1+i)^n
i = .122/4 = .0305
n = 4
so (1+.0305)^4 = 1.0305)^4