Which of the following give the highest amount of interest for depositing the same amount of money for 2 years? 5% annual interest rate, no compounding ○ 4.94% annual interest rate, compounding semi-annually 4.92% annual interest rate, compounding monthly 4.9% annual interest rate, compounding daily 4.88% annual interest rate, compounding continuously

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 22PROB
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Which of the following give the highest amount of interest for depositing the same amount of
money for 2 years?
5% annual interest rate, no compounding
○ 4.94% annual interest rate, compounding semi-annually
4.92% annual interest rate, compounding monthly
4.9% annual interest rate, compounding daily
4.88% annual interest rate, compounding continuously
Transcribed Image Text:Which of the following give the highest amount of interest for depositing the same amount of money for 2 years? 5% annual interest rate, no compounding ○ 4.94% annual interest rate, compounding semi-annually 4.92% annual interest rate, compounding monthly 4.9% annual interest rate, compounding daily 4.88% annual interest rate, compounding continuously
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