Question
2. You are comparing three investments called A, B, and C from which you will choose to invest $20,000. You will convert the investment to
2. You are comparing three investments called A, B, and C from which you will choose to invest $20,000. You will convert the investment to cash at the end of 5 years. Investment A pays 2.5% nominal annual interest compounded monthly with a bonus of $600 at the end of the investment. Investment B pays 3% nominal annual interest compounded quarterly with a bonus of $600 when you cash out at the end. Investment C pays simple interest of 6% per year. (a) Calculate the value of investment A after 9 years. (2 marks) (b) Calculate the value of investment B after 9 years. (2 marks) (c) Calculate the value of investment C after 9 years. (2 marks)
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