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When investing, you can either purchase investment A which pays $3829.38 in 3 months and $9791.43 in 15 months or investment B which pays $2596.17
When investing, you can either purchase investment A which pays $3829.38 in 3 months and $9791.43 in 15 months or investment B which pays $2596.17 in 6 months and $11057.30 in 12 months. Both investments sell for the same price. If the prevailing rate of interest is 5.35% per year compounded quarterly.
a) what is the most you should be willing to pay for investment A today?
b) what is the value today of investment B?
c) what is the value today of the investment would you prefer to purchase?
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