Which do you prefer: a bank account that pays 5% per year (EAR) for three years or

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a. an account that pays 2.5% every six months for three years?

b. an account that pays 7.5% every 18 months for three years?

c. an account that pays 0.5% per month for three years?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:22 AM

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Which do you prefer: a bank account that pays 5% per year (EAR) for three years or

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Fundamentals of Corporate Finance

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