Question

UU →X CODE Select the best altemative among the following five allemalives. Assume the investments for a pero a. 15.01% interest rate annual compounded monthly F= b. 15.00% interest rate annual compounded daily C. 15.02% interest rate annual compounded Select the best alternative? escriba que opcion de las 3 gano

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Answer 1

Time = 4 years, P = $ 15,000

A. interest rate = 15.01% compounded monthly

jejs = [1 + inom ju – 1 m

ieff = (1 + 0.1501, 12 112 – 1 0.1609

Interest rate = 16.09% per annum

F = 15,000×1.1609⁴ = $ 27,241.

B. Interest rate = 15% compounded daily

Assume, Number of days (in year)= 360 days

098 819['0 ~ I - ogleto + 1] = {$?? E

Interest rate = 16.18% per year

F = 15,000 × 1.1618⁴ = $ 27,328

C. Interest rate = 15.02% per quarter.

0.15024 ieff = (1 + 0.1588

Interest rate = 15.88% per annum

F = $ 15,000 × 1.1588⁴ = $ 27,054

Select option B. 15% compounded daily

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