Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A person wants to invest $21,000 for 3 years and is considering two different investments. The first investment, a money market fund, pays a guaranteed
A person wants to invest $21,000 for 3 years and is considering two different investments. The first investment, a money market fund, pays a guaranteed 5.8% interest compounded daily. The second investment, a treasury note, pays 6.1% annual interest. Which investment pays the most interest over the 3-year period? Select the correct choice below and, if necessary, fill in any answer box(es) to complete your choice. (Do not round until the final answer. Then round to the nearest cent as needed.) O A. The market fund is the better investment, since the market fund produces in interest, and the treasury note pays S in interest OB. The treasury note is the better investment, since the market fund produces $ in interest, and the treasury note pays $ in interest. O C. Both the market fund and the treasury note produce the same interest with $ A person wants to invest $21,000 for 3 years and is considering two different investments. The first investment, a money market fund, pays a guaranteed 5.8% interest compounded daily. The second investment, a treasury note, pays 6.1% annual interest. Which investment pays the most interest over the 3-year period? Select the correct choice below and, if necessary, fill in any answer box(es) to complete your choice. (Do not round until the final answer. Then round to the nearest cent as needed.) O A. The market fund is the better investment, since the market fund produces in interest, and the treasury note pays S in interest OB. The treasury note is the better investment, since the market fund produces $ in interest, and the treasury note pays $ in interest. O C. Both the market fund and the treasury note produce the same interest with $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started