You intend to invest $100 000 for five years. Four different interest payment options are available. Choose the interest option that yields the highest return over the five year period.
You intend to invest $100 000 for five years. Four different interest payment options are available. Choose the interest option that yields the highest return over the five year period.
A . a lump-sum payment of $22 500 on maturity (in five years)
B . an annually compounded rate of 4.15%
C . a quarterly-compounded rate of 4.1%
D . a continuously-compounded rate of 4%
Answer: C
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