You have two investment options. You can either invest $5,000 today once for ten years at an interest rate of 12%/year compounding on a yearly basis or you can invest the same amount of money for the same period of time in another project that has a yearly interest rate of 10% and compounds on a monthly basis. Assuming that both investments are completely risk free.

What will be better for you?

Answer rating: 100% (QA)

Solution We can find which investment option is better Investment 1 Principa... View the full answer