Which do you prefer: a bank account that pays 5.1% per year (EAR) for three years...

Which do you prefer: a bank account that pays 5.1% per year (EAR) for three years or

a. An account that pays 2.8% every six months for three years?

b. An account that pays 8.3% every 18 months for three years?

c, An account that pays .67% every per months for three years?

(Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.)

If you deposit $1 into a bank account that pays 5.1% per year for three years: The amount you will receive after three years is

$nothing. (Round to five decimal places.)

Expert Solution

Calculations-

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jeff jeffy answered 1 year ago

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