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Your financial adviser suggests 4 investment options. Investment A pays a 15% return compound annually. Investment B pays a 15% return compound semi-annually. Investment C

  1. Your financial adviser suggests 4 investment options. Investment A pays a 15% return compound annually. Investment B pays a 15% return compound semi-annually. Investment C pays a 15% compound quarterly. Investment D pays a 15% return compound monthly. Which investment option will you accept?

  1. Option A
  2. Option B
  3. Option C
  4. Option D

  1. One of your friends owes you 10000$. He gives you the choices of receiving 10000$ today or 12800$ in 2 years (December 2023) or 14800$ in 4 years (December 2025). If the interest rate is 12% compound semi-annually, which option is the most rational?

  1. 10000$ today
  2. 12800$ in 2 years
  3. 14800$ in 4 years
  4. I'll be indifferent

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