Question
A bank offers two alternative interest schedules for a savings account of $100,000 locked in for 3 years: (a) a monthly rate of 1% and
A bank offers two alternative interest schedules for a savings account of $100,000 locked in for 3 years: (a) a monthly rate of 1% and (b) an annually, continuously compounded rate of 12%. Which alternative should you choose? Hint: convert APR to EAR, then compare the two options
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R E A L E S T A T E I N V E S T I N G
Authors: T Vijayan Babu
1st Edition
979-8865631637
