Question
a) Suppose you have $1,000 to invest for a period of three years. Currently, default risk-free one-year securities are paying a 12% interest rate per
a)Suppose you have $1,000 to invest for a period of three years. Currently, default risk-free one-year securities are paying a 12% interest rate per year, on the last day of each of the two years over your investment horizon.
Required: Compute the value of your investment over the three-year investment horizon using;
i)Simple interest(4 marks)
Compound interest
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
