Question: Question 3 1 points Save Answer Tom wants to deposit $100 in a bank for three years. He can either 1) leave the money for
Question 3 1 points Save Answer Tom wants to deposit $100 in a bank for three years. He can either 1) leave the money for three years and ear an annual rate of 5% or 2) deposit money for two years and earn annual interest rate of 4.5%, then come back to the bank and re-deposit the original investment plus eamed interest for one additional year What value of annual interest rate applied to a one- year deposit two years from now would yield the very same outcome for Tom the chooses option compared to how much he would collater three years is he goes with option 817 A. 5.25% B.5.75% C.5.50% D. 10.78% E. 6.10% F. 6.01% G.5.33% H.6.25%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
