You expect $$2,000$ in a year. Which of the following cases would yield the greatest present value?

Question $9$Answer

a$.$

Interest rate $16\%$ per year with monthly compounding

b$.$

Interest rate $16\%$ per year with annual compounding

c$.$

Interest rate $16\%$ per year with quarterly compounding

d$.$

Interest rate $16\%$ per year with semi$-$annual compounding

e$.$

Interest rate $18\%$ per year with quarterly compounding

f$.$

Interest rate $18\%$ per year with monthly compounding

g$.$

Interest rate $18\%$ per year with annual compounding

h$.$

Interest rate $18\%$ per year with semi$-$annual compounding