Question: DO NOT ANSWER and Jerry are roommates. They decide to purchase a TV today and to split the cost evenly. If they wait until the

DO NOT ANSWER

and Jerry are roommates. They decide to purchase a TV today and to split the cost evenly. If they wait until the entire sum is due in 3 years, then they will each have to pay $10,000. Tom makes monthly payments starting today. Jerry makes semi-annual payments starting in 1 quarter. Both face an interest rate of 10% compounded at the frequency of their payments . Of the two payment strategies, what is the lower EAR?

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