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ing to invest $1000. You have three choices on how to invest your money and in Suppose you are goi situations the annual interest rate

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ing to invest $1000. You have three choices on how to invest your money and in Suppose you are goi situations the annual interest rate (APR) is 890. all three all t he first account advertises, "8% APR compounded annually" This means that at the end of each a. year 8% of the current balance is added to the value of the account. i. What is the interest rate per compounding period? _ii. Complete the following table 8% Compounded Annually number of years since investment was made value of the investment (in dollars) ii. What is the annual growth factor for this account? Interpret the annual growth factor in the context of this problem. The second account advertises "800 APR compounded semiannually". This means that interest is added two times per year (every six months). i. What is the interest rate per compounding period? b. i. Complete the following table 890 Compounded Semiannually number of de value of the investment (in dollars) n years since investment was 0.5 i. What is the six-month growth factor for this account? Interpret the annual growth factor in the iv. What is the annual growth factor for this account? context of this problem. ine the actual percentage change of the account over a 1-year time period. This percentage is often referenced as the annual percentage yield (APY). Use the annual growth factor computed in part (iv) to determi v. The third account advertises ..8% APR compounded daily. This means that interest is added 365 times per year (every day). i. What is the interest rate per compounding period? c. i. Complete the following table 8% Compounded Daily number of years since investment was made 0 value of the investment (in dollars ii What is the daily growth factor for this account? iv. What is the annual growth factor for this account? Interpret the annual growth factor in the context of this problem. v. Use the annual growth factor computed in part (iv) to determine the annual percentage yield (APY). d. Which of the three accounts would you chose for your investment? Justify your

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