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of 2 You may need the following formation to complete the que 1 1 og 1 1020 ADRIAAL Grad DO BE 22 ONDO OSNO 3 11013 10781 2 140210 1 4714 0101 14201 One DET O 01 051191 21201 DI 14702 0122 10472 09 0 0 120705 30 01103 012 01147 10 1290 10 1103656 12517 566121 1107 SL5205 sono iperiod ieff = (1 + mm 1 m nominal interest rate mof compounding periods in a nominal penod P = F/(1+i)" F = P*(1+i)" P: present value; F: future value;i: interest rate; n: # of periods 15 ptsdatum Ah the cared that the count at ownership will be 100 and that those costs will increatly 5.200 at the ownership for the sustaquent to yours (hour total yours et cachership ini depositatum money rement account to the cost to the next to yote you there with many from this account at the end of each how this post be that your stats an awes vate of it. This can be down into two cho 24 pts). You have been offered two mutually exclusive investment opportunities. The first is quoted at on annual rate of 12.5% per year compounded semiannually le every six months). The seconds quoted at an annual rate of 12.12 compounded monthly Determine which of the two options will provide higher returns after one year. (Hint: Compare the effective annual interest rates.) Bonus (2 pts). Assume that you have $20,000 to invest over a six-year time period. You intend to invest the entire sum now and then withdraw the accumulated amount six years from now. Calculate how much more money will be in the account at the end of six years if the preferred investment option from Question 2 is selected instead of the less preferred investment option of 2 You may need the following formation to complete the que 1 1 og 1 1020 ADRIAAL Grad DO BE 22 ONDO OSNO 3 11013 10781 2 140210 1 4714 0101 14201 One DET O 01 051191 21201 DI 14702 0122 10472 09 0 0 120705 30 01103 012 01147 10 1290 10 1103656 12517 566121 1107 SL5205 sono iperiod ieff = (1 + mm 1 m nominal interest rate mof compounding periods in a nominal penod P = F/(1+i)" F = P*(1+i)" P: present value; F: future value;i: interest rate; n: # of periods 15 ptsdatum Ah the cared that the count at ownership will be 100 and that those costs will increatly 5.200 at the ownership for the sustaquent to yours (hour total yours et cachership ini depositatum money rement account to the cost to the next to yote you there with many from this account at the end of each how this post be that your stats an awes vate of it. This can be down into two cho 24 pts). You have been offered two mutually exclusive investment opportunities. The first is quoted at on annual rate of 12.5% per year compounded semiannually le every six months). The seconds quoted at an annual rate of 12.12 compounded monthly Determine which of the two options will provide higher returns after one year. (Hint: Compare the effective annual interest rates.) Bonus (2 pts). Assume that you have $20,000 to invest over a six-year time period. You intend to invest the entire sum now and then withdraw the accumulated amount six years from now. Calculate how much more money will be in the account at the end of six years if the preferred investment option from Question 2 is selected instead of the less preferred investment option

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