Which do you prefer: a bank account that pays 5.0% per year (EAR) for three years or a. An account that pays 2.5% every six months for three years? b. An account that pays 7.5% every 18 months for...

Which do you prefer: a bank account that pays

5.0%

per year (EAR) for three years or

a. An account that pays

2.5%

every six months for three years?

b. An account that pays

7.5%

every 18 months for three years?

c. An account that pays

0.50%

per month for three years?

(Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.)

If you deposit

into a bank account that pays

5.0%

per year for three years:

The amount you will receive after three years is _________________
(Round to five decimal places.)

Jun 03, 2022

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Which do you prefer: a bank account that pays 5.0% per year (EAR) for three years or a. An account that pays 2.5% every six months for three years? b. An account that pays 7.5% every 18 months for...

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Which do you​ prefer: a bank account that pays 5.0% per year​ (EAR) for three years or a. An account that pays 2.5% every six months for three​ years? b. An account that pays 7.5% every 18 months for...

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Related Questions & Answers

Submit New Assignment

Which do you prefer: a bank account that pays 5.0% per year (EAR) for three years or a. An account that pays 2.5% every six months for three years? b. An account that pays 7.5% every 18 months for...