Which do you prefer: a bank account that pays 10% per year (EAR) for three...
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Accounting
Which do you prefer: a bank account that pays 10% per year (EAR) for three years or a. An account that pays 5% every six months for three years? b. An account that pays 15% every 18 months for three years? c. An account that pays 1% per month for three years? a. An account that pays 5% every six months for three years? If you deposit $1 into a bank account that pays 10% per year for three years, you will have $ (Round to five decimal places.) If you deposit $1 into a bank account that pays 5% every six months for three years, the amount you will receive after three years is $ Therefore, you will prefer: (Select from the drop-down menu.) b. An account that pays 15% every 18 months for three years? If the account pays 15% every 18 months for three years, the amount you will receive after three years is $ (Round to five decimal places.) Therefore, you will prefer: (Select from the drop-down menu.) c. An account that pays 1% per month for three years? If the account pays 1% every month for three years, the amount you will receive after three years is $ Therefore, you will prefer: (Select from the drop-down menu.) (Round to five decimal places.) (Round to five decimal places.)
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