Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An investor has an amount of 100,000 dollars and wants to invest it for a year, and he has the following options: The first option:
An investor has an amount of 100,000 dollars and wants to invest it for a year, and he has the following options: The first option: putting the amount in the bank at 15% interest the second choice: Invest the amount for a period of four months at a compound interest equal to 10% annually And invest the proceeds for another four months, at a compound interest of 15% annually The resulting proceeds are also invested for a period of four months, at a compound interest of 20% annually the third option: Employing the amount at an interest rate that starts at 10% annually in the first month and increases every month by 1% on an annual basis, which means the proceeds of the amount are invested with the interest at the end of each month for the following month. The question is: Which of the three options is the best and why? Note: you should solve the three options and choose the best one
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