There are three investments you are considering: Investment 1: A saving account with a monthly interest rate of 1.3% compounded monthly. Investment 2:...
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There are three investments you are considering:


Investment 1: A saving account with a monthly

interest rate of 1.3% compounded monthly.

Investment 2: A super-growth fund guarantees it will pay 16% compounded annually.

Investment 3: A high-growth stock experienced 8% growth per 6 months and you expect it will grow at the same rate in future.


a. What are the APRs for the three investment options?

b. Which investment options should you choose?

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