Question
Three local commercial banks offer the following annual interest rates for 1- year certificate of deposit (CD): a) Simple interest of 5.05%. b) 5% compounded
Three local commercial banks offer the following annual interest rates for 1- year certificate of deposit (CD):
a) Simple interest of 5.05%.
b) 5% compounded monthly.
c) 4.75% compounded daily.
Which CD will you choose for your investment of RM1,000? Explain your answer.
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Public Finance And Public Policy
Authors: Arye L. Hillman
2nd Edition
0521738059, 978-0521738057
