Post a New Question

Posted by BJ on Monday, October 4, 2010 at 10:51pm.

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.

a) 1.126^1 = b) (1.062)^2 = c) (1.0305)^4 = d) (e)^.12 =

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

More Related Questions