Which do you prefer: a bank account that pays 8%per year (EAR) for three years or:

a. An account that pays 4%every six months for three years?

b. An account that pays 12%every 18 months for three years?

c. An account that pays 0.8%per month for three years?

a. An account that pays 4%every six months for three years?

If you deposit $1 into a bank account that pays 8%per year for three years, you will have $