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Robert is thinking to deposit his heritage of $7,000,000 in the Commonwealth bank for 5 years; a bank teller offers him an interest rate
Robert is thinking to deposit his heritage of $7,000,000 in the Commonwealth bank for 5 years; a bank teller offers him an interest rate of 3.75% per year and asks him whether he wants his interest rate to be compounded. A. Annually B. Monthly C. Weekly REQUIRED: Which compounding interest rate should Robert choose, given he is interested to maximise his Future value of the heritage? What is difference in FV value between the highest and the lowest compounding? (show all workings).
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To maximize the future value FV of his 7000000 heritage Robert should choose the compounding option ...
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Smith and Roberson Business Law
Authors: Richard A. Mann, Barry S. Roberts
15th Edition
1285141903, 1285141903, 9781285141909, 978-0538473637
