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Which do you prefer: a bank account that pays 5.5% per year (EAR) for three years or a. An account that pays 2.8% every six
Which do you prefer: a bank account that pays 5.5% per year (EAR) for three years or a. An account that pays 2.8% every six months for three years? b. An account that pays 7.2% every 18 months for three years? C. An account that pays 0.43% per month for three years? (Note: Compare your current bank EAR with each of the three altemative accounts. Be careful not to round any intermediate steps less than six decimal places.) If you deposit $1 into a bank account that pays 5.5% per year for three years: The amount you will receive after three years is (Round to five decimal places.) a. An account that pays 2.8% every six months for 3 years? If you deposit $1 into a bank account that pays 2.8% every six months for three years: The amount you will receive after three years is s .(Round to five decimal places.) Which bank account would you prefer? b. An account that pays 7.2% every 18 months for 3 years? If you deposit $1 into a bank account that pays 7.2% every 18 months for three years: The amount you will receive after three years is $. (Round to five decimal places.) Which bank account would you prefer? C. An account that pays 0.43% per month for three years? .(Select from the drop-down menu.) . (Select from the drop-down menu.) Enter your answer in each of the answer boxes
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