RTC Financial Inc., in Essex County is considering the following two investments: the first investment pays 1% interest per month, compounded monthly, while the second pays 3% interest per 3 months, compounded quarterly.
a) What is the effective quarterly interest rate for each of the two investments?
b) What is the effective annual interest rate for each of the two investments?
c) Which investment should RTC Financial Inc. select?
d) How much should the interest rate be (per month, compounded monthly) for the first investment so that neither of the two investments is preferred over the other after one year of investment?