You are contemplating investing some surplus funds and the following options are available: Invest $50,000 @ 4% p.a. compounded annually for 5 years. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years. Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years. Which one of the above is the Second-best option? and why?

You are contemplating investing some surplus funds and the following options are available: Invest $50,000 @ 4% p.a. compounded annually for 5 years. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. Invest $40,000 @4.5% p.a. compounded Semi-annually for 5 years. Invest $50,000 @ 3% p.a. compounded Semi-annually for 5 years. Which one of the above is the Second-best option? and why?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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You are contemplating investing some surplus funds and the following options are available: 1. Invest $50,000 @ 4% p.a. compounded annually for 5 years. 2. Invest $45,000 @ 3% p.a. compounded quarterly for 5 years. 3. Invest $40,000 4.5% p.a. compounded semi-annually for 5 years. 4. Invest $50,000 @ 3% p.a. compounded semi-annually for 5 years. 5. Invest $55,000 @ 0.5% p.a. compounded weekly for 5 years Which one of the above is the second-best option?
You are contemplating investing some surplus funds and the following options are available: 1 . Invest $50,000. @ 4% p . a . compounded annually for 5 years. 2 . Invest $45,000. @ 3% p . a . compounded quarterly for 5 years. 3 . Invest $40,000. @ 4.5% p . a . compounded semi - annually for 5 years. 4 . Invest $50,000. @ 3% p . a . compounded semi - annually for 5 years. 5 . Invest $55,000. @ 0.5% p . a . compounded weekly for 5 years. Which one of the above is the second - best option?
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