Which do you prefer: a bank account that pays 6% per year (EAR) for three years...

 

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Which do you prefer: a bank account that pays 6% per year (EAR) for three years or: a. An account that pays 3% every six months for three years? b. An account that pays 9% every 18 months for three years? c. An account that pays 0.6% per month for three years? a. An account that pays 3% every six months for three years? If you deposit $1 into a bank account that pays 6% per year for three years, you will have $ (Round to five decimal places.) Which do you prefer: a bank account that pays 6% per year (EAR) for three years or: a. An account that pays 3% every six months for three years? b. An account that pays 9% every 18 months for three years? c. An account that pays 0.6% per month for three years? a. An account that pays 3% every six months for three years? If you deposit $1 into a bank account that pays 6% per year for three years, you will have $ (Round to five decimal places.)

Answer rating: 100% (QA)

Using the formula FV PV 1r eef PV ... View the full answer