SOLUTION: Suppose you are considering three investments? Determine which investment is best in terms of its effective Annual Yield. Investment A offers 5% interest, compounded monthly. I

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Question 934369: Suppose you are considering three investments? Determine which investment is best in terms of its effective Annual Yield.
Investment A offers 5% interest, compounded monthly.
Investment B offers 4.9% interest, compounded daily.
Investment C offers 4.85% interest, compounded continuously.

Answer by ptfile(81) About Me  (Show Source):
You can put this solution on YOUR website!
Investment A
Effective+Annual+Yield+=%28%281%2Br%2Fn%29%5En-1%29%28100%29
Effective+Annual+Yield+=%28%281%2B.05%2F12%29%5E12-1%29%28100%29
Effective+Annual+Yield+=5.11
Investment B
Effective+Annual+Yield+=%28%281%2Br%2Fn%29%5En-1%29%28100%29
Effective+Annual+Yield+=%28%281%2B.049%2F360%29%5E360-1%29%28100%29
Effective+Annual+Yield+=5.02
Investment C
Effective+Annual+Yield+=+%28e%5Er-1%29%28100%29
Effective+Annual+Yield+=+%28e%5E.0485-1%29%28100%29
Effective+Annual+Yield+=+4.97
Investment A has the best term.