1. Investment portfolio offers 10% interest compounded semiannually, while investment portfolio B offers 8% interest compounded...
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1. Investment portfolio offers 10% interest compounded semiannually, while investment portfolio B offers 8% interest compounded every 4 months. Which investment earns more after 4 years? 2. In a year, how much more does a $300,000 investment earn if given a 12% rate, compounded monthly, than if it were given a 10% rate, compounded semiannually? (Show working) 1. Investment portfolio offers 10% interest compounded semiannually, while investment portfolio B offers 8% interest compounded every 4 months. Which investment earns more after 4 years? 2. In a year, how much more does a $300,000 investment earn if given a 12% rate, compounded monthly, than if it were given a 10% rate, compounded semiannually? (Show working)
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To determine which investment earns more after 4 years we need to calculate the future value of each ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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