Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose whether you want 12% compounded annually interest, or 12% compounded monthly interest. Is 12% given annually the same thing as 1% given monthly? Why or why not?

Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose whether you want 12% compounded annually interest, or 12% compounded monthly interest. Is 12% given annually the same thing as 1% given monthly? Why or why not?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 4QTD

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