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ii) Aziz has $2000 and plans to invest the money. He has two alternatives. Alternative 1: Deposit in saving account and earns 6% interest compounded
ii) Aziz has $2000 and plans to invest the money. He has two alternatives. Alternative 1: Deposit in saving account and earns 6% interest compounded monthly for three years. Alternative 2: Purchase a bond for $2000. The bond has a face value of $2,000 and will be paid 6% of interest in every six months for three years, after which time the bond matures. Draw a cash flow diagram and evaluate which alternative could benefit more
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