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An investor is proposed to deposit EUR 100 thousand in a bank for the three year period based on the three alternatives. First, an investor
An investor is proposed to deposit EUR 100 thousand in a bank for the three year period based on the three alternatives. First, an investor is proposed the annual compound interest rate of 7%. Second, the investor is proposed the annual simple interest rate of 10%. And third, the investor is proposed the annual compound interest rate of 6.5% with monthly compounding. Which alternative should be selected to maximize the return on the investment?
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