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 6.8 % every 18 months for three years?
C. An account that pays 0.65 % per month 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.)
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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 [...]?
A. An account that pays 2.8 % every six months for three years?
B. An account that pays 6.8 % every 18 months for three years?
C. An account that pays 0.65 % per month 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.)
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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 [...]?
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