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You are contemplating investing some surplus funds and the following options are available: Invest $50,000 @ 4% p.a. compounded annually for 5 years. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years. Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years. Invest $55,000@ 0.5% p.a compounded weekly for 5 years. Which one of the above is the Second-best option?

You are contemplating investing some surplus funds and the following options are available: Invest $50,000 @ 4% p.a. compounded annually for 5 years. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years. Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years. Invest $55,000@ 0.5% p.a compounded weekly for 5 years. Which one of the above is the Second-best option?

Intermediate Algebra
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 27PS
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You are contemplating investing some surplus funds and the following options are available:

  • Invest $50,000 @ 4% p.a. compounded annually for 5 years.
  • Invest $45,000 @ 3% p.a. compounded quarterly for 5 years.
  • Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years.
  • Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years.
  • Invest $55,000@ 0.5% p.a compounded weekly for 5 years.

Which one of the above is the Second-best option?

 

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