Interest rates Suppose you have $1,000 to invest and are considering two alternative options. Option 1 has

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Interest rates Suppose you have $1,000 to invest and are considering two alternative options. Option 1 has an APR of 10 %, compounded quarterly, while option two has an APR of 12 %, compounding annually.

What is your thought process in deciding between the two? Why is it not as easy a question as it first appears? How could you definitively distinguish between the two?

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