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?