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A bank offers two types of investment to its savers. The first type of investment pays 5% interest compounded quarterly; while in the second type
A bank offers two types of investment to its savers. The first type of investment pays 5% interest compounded quarterly; while in the second type of investment, pay 3% compound interest with continuous capitalization. Considering the term of 1 year, which of the 2 types of investment generates the highest final amount, and consequently yield? A)capitalization yields 3%
b) capitalization yields 5%
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