a)Calculate a more profitable option:
"FV=4000(1+\\frac{0.06}{12})^6=4121.51" , for 6 month 6% compounded monthly
"FV=4000(1+\\frac{0.03}{365})^{183}=4060.62" , for 6 month 3% compounded monthly
profitable first option
b) Interest earned = FV-PV=4121.51-4000=121.51
Interest earned = FV-PV=4060.62-4000=60.62
c)"Effective rate = \\frac{i}{PV}\\times\\frac{12}{6}=\\frac{121.51}{4000}\\times\\frac{12}{6}=0.060755" ,6.0755%
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