What are APR *and* APY rates of investment X that earns 0.2% per week, compounded weekly? You
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What are APR *and* APY rates of investment X that earns 0.2% per week, compounded weekly?
You can invest (that is, 'lend') for one year either at the rate X described above, or, alternatively, at the rate Y that offers the risk premium of 6.5% above today's value of 1-year U.S. Treasury rate. If you consider both investments equally risky - would you invest in X or Y? Why?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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