$100 is invested for two years. Which produces the most proceeds?
a) 5% simple interest
b) 4.9% compound interest, annual periodicity
c) 4.9% compound interest, semi-annual periodicity
d) 4.8% compound interest, monthly periodicity
Answer: c) 4.9% compound interest, semi-annual periodicity
You might also like to view...
A common, but mistaken assumption, is that high demand for workers applies only to which kind of jobs?
A) medical doctors B) low-skilled jobs C) highly skilled jobs D) information security analysts
Which of the following is true of mortgage-backed securities?
A) Mortgage-backed securities assure a flat 15% return. B) Mortgage-backed securities are guaranteed by the U.S. government. C) Mortgage-backed securities can only be purchased by investment banks. D) Mortgage-backed securities represent claims on the cash flows generated by a pool of homeloans.