Bill has $3,000 to invest in an interest bearing account for 3 years. There were several options available to him. Option 1 will pay him a 5% interest rate, compounded annually. Option 2 pays the same rate of interest, but compounds quarterly instead. Option 3 pays 0.25% less annual interest, but compounds monthly. Finally, option 4 pays him an extra $350 in addition to his principal amount at maturity

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To determine the best option for Bill we need to calculate the future value of his investment for ea... View the full answer