37. Compounding intervals (S2.4) Which would you prefer? a. An investment paying interest of 12% compounded annually.

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37. Compounding intervals (S2.4) Which would you prefer?

a. An investment paying interest of 12% compounded annually.

b. An investment paying interest of 11.7% compounded semiannually.

c. An investment paying 11.5% compounded continuously.

Work out the value of each of these investments after 1, 5, and 20 years.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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