Question
Natalia is considering two investment opportunities. Investment A has a stated rate of 4 percent, compounded daily. Investment B has a stated rate of 4.25,
Natalia is considering two investment opportunities. Investment A has a stated rate of 4 percent, compounded daily. Investment B has a stated rate of 4.25, compounded semi-annually. Which investment should Natalia choose if she wishes to maximize the value of her account?
Investment A because it has an effective annual rate of 4.08 percent. | ||
Investment B because it has an effective annual rate of 4.30 percent. | ||
Investment A because it has an effective annual rate of 3.92 percent | ||
Investment B because it has an effective annual rate of 4.20 percent. | ||
None of the above answers are correct. |
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