X and y x provides an interest rate of 125 per year which, Financial Management

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X and y x provides an interest rate of 125 per year which

1. Suppose you are faced with two investment opportunities: X and Y. X provides an interest rate of 12.5 % per year, compounded monthly. Y provides an annual interest rate of 12.5 % compounded quarterly. Which investment provides more interest earned?

2. You have a credit card balance of $2,406.93. You quit using the card and make monthly payments of $100. Assuming your interest rate is 18%, how long will it take you to pay off the balance?

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Financial Management: X and y x provides an interest rate of 125 per year which

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Financial Management: X and y x provides an interest rate of 125 per year which

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