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Consider the following investment options: Option A: Invest $10,000 for 5 years at 8% p.a. compounded quarterly for the first 2 years then 10% p.a.,
Consider the following investment options: Option A: Invest $10,000 for 5 years at 8% p.a. compounded quarterly for the first 2 years then 10% p.a., compounded annually for the remaining period. Option B: Invest $5,000 at 5% p.a. compounded continuously. 1. What is the future value of Option A after 5 years? (2 marks) $ 2. How long will it take for Option B to have the same value as Option A after 5 years? (2 marks) years
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