A student has $3,000 saved up to take a vacation in 5 years time. She doesnt want

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A student has $3,000 saved up to take a vacation in 5 years’ time. She doesn’t want to take a big risk so a commercial bank gives her the following option to choose from:

A. Non-compounding rate of 9.8%

B. Compounding rate of 8.2% annual compounding

D. Compounding rate of 8% compounded quarterly.

Given that she needs the highest future value you would choose:

Option 1

Option 2

Option 3

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Related Book For answer-question

Business Statistics Communicating with Numbers

ISBN: 978-1259957611

3rd edition

Authors: Sanjiv Jaggia

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Posted Date: Feb 07, 2019 11:34 AM

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A student has $3,000 saved up to take a vacation in 5 years time. She doesnt want

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Given PV 3000 Option 1 Non compounding rate of 98 N 5 years R 0098 ... View the full answer

Business Statistics Communicating with Numbers

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