WHICH INVESTMENT IS BEST? You have your date of birth (DDMMYY) as the amount of money that can be invested in a Term Deposit in a bank for 3 years. I have $270,405 to invest: There are 4 option available: Option 1: This account earns 4.02% p.a. interest compounded quarterly Option 2: This account earns 4% p.a. interest compounded monthly Option 3: This account earns 3.99% p.a. interest compounded weekly (assume 52 weeks in a year) Option 4: This account earns 3.99% p.a. interest compounded daily (assume that there are 365 days in a year) Calculate the principal on each investment at the end of the 3rd year and rank each of the four options from Highest to Lowest return (the amount of money at the end of the 3 years).

WHICH INVESTMENT IS BEST? You have your date of birth (DDMMYY) as the amount of money that can be invested in a Term Deposit in a bank for 3 years. I have $270,405 to invest: There are 4 option available: Option 1: This account earns 4.02% p.a. interest compounded quarterly Option 2: This account earns 4% p.a. interest compounded monthly Option 3: This account earns 3.99% p.a. interest compounded weekly (assume 52 weeks in a year) Option 4: This account earns 3.99% p.a. interest compounded daily (assume that there are 365 days in a year) Calculate the principal on each investment at the end of the 3rd year and rank each of the four options from Highest to Lowest return (the amount of money at the end of the 3 years).

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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