Question
You are considering three options for investing $10,000: Option A: 7% compounded annually Option B: 6% compounded monthly Option C: 5% compounded continuously (a)
You are considering three options for investing $10,000: Option A: 7% compounded annually Option B: 6% compounded monthly Option C: 5% compounded continuously (a) Which option would be the best for investing $10,000 for 8 years? (Option A, B or C) (b) How long (in years) would you need to invest your money for Option C in order for it to be as good as option A over 8 years? (Round to 2 decimal places.)
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Money Banking and Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
4th edition
007802174X, 978-0078021749
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