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  3. 1. a deposit of $10,000 is made in a bank for 1 ye

1. A deposit of $10,000 is made in a bank for 1 year. The bank...

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Accounting

1. A deposit of $10,000 is made in a bank for 1 year. The bank offers 2 options;A. Receive interest @ 12% P.A. compounded monthlyB. Receive interest @ 12.25% P.A. compounded half yearlyWhich option should be preferred?2. A company is borrowing $2,000,000 from a bank for expansion of its business. The banks gives it two options:A. Return the money in 5 equal annual instalments @ 10% P.A.B. Return the money in equal half yearly instalments over a period of 5 years @ 9.8% P.A.Which option should be preferred?

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