Question

there is an investment proposition in front of you where you would invest 100 dollars in a project and after 2 years you can sell investment. You would earn 5% paid annually or you can receive the interest quaterly. which one you should go for?​

Answer 1

Answer:

well , I prefer the quarterly interest

Step-by-step explanation:

annually interest:

100 (1+

$100(1 + \frac{0.5}{1} )^{1(2)}$

= 300

quarterly interest:

$100(1 + \frac{0.5}{4} )^{4(2)}$

= 320.36