In: Finance
Consider the following investment alternatives:
Investment Rate Compounding
A 6.25% Annual
B 6.10% Daily
C 6.125% Quarterly
D 6.15% Fortnightly
E 6.120% Monthly
Which alternative offers you the highest effective rate of return?
a.
Investment E
b.
Investment C
c.
Investment D
d.
Investment A
e.
Investment B
Investment D has the highest effective rate of return.
Answer is choice c given.
Calculation as below: