Which would you prefer? a. An investment paying interest of 12 percent compounded annually. b. An investment

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Which would you prefer?

a. An investment paying interest of 12 percent compounded annually.

b. An investment paying interest of 11.7 percent compounded semiannually.

c. An investment paying 11.5 percent compounded continuously.

Work out the value of each of these investments after 1, 5, and 20 years.

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 03:53 AM

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Which would you prefer? a. An investment paying interest of 12 percent compounded annually. b. An investment

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Assume the amount invested is one dollar Let A represen...View the full answer

Principles of Corporate Finance

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