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Your friend has just inherited SAR 75,000 . He is considering two investments as follows: - Opening a savings account that would cam an annual
Your friend has just inherited SAR 75,000 . He is considering two investments as follows: - Opening a savings account that would cam an annual interest rate of 4.15% compounded annually. If your fricnd does not withdraw the money for two years, the interest would increase by 10 basis points to 4.25% for any year thereafter without withidrawal. - He could deposit his money in a savings account which can carn a simple interest of 4.6% per year (the interest is not reinvested) for a minimum of five years without withdrawals. Which imvestment would be better over 5 years
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