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Investment A pays 10.0% monthly. Investment B pays 10.1% compounded three times a year. Which of the two would be the better investment? Pick Investment
Investment A pays 10.0% monthly. Investment B pays 10.1% compounded three times a year. Which of the two would be the better investment?
Pick Investment B: Investment B has an nominal rate of 10.1% which is greater then Investment A nominal rate of 10.0% | ||
Pick Investment B: Investment B investment effective rate of 10.51% is greater than Investment A effective rate of 10.49% | ||
Pick Investment A: Investment A effective rate of 10.47% is greater than Investment B effective rate of 10,44% | ||
IPick either one as the effective interest rates are the same.. |
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