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If an investor seeks an annual effective interest rate of 7%,
which alternative should he pick?

Select one:

a. Alternative A: a nominal interest rate of 6.79% compounded
monthly

b. Alternative B: a nominal interest rate of only 6.58% but a
quarterly compounding

c. Alternative C: a nominal interest rate of 3.5% compounded
semi-annually

d. None of the alternatives work for him