Question

Which of the following investment alternatives would provide the greatest ending wealth for your investment?
options
 1 - 10% compounded daily (360 days)

 2 - 10.5% compounded annually

 3 - 10.25% compounded quarterly

4 - There is not sufficient information to determine the best alternative

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Answer 1

Answer:

3

Step-by-step explanation:

Answer 2

Answer:

10.25% compounded quarterly

10.25% compounded quarterly investment alternatives would provide the greatest ending wealth for your investment.

Explanation:

Compounding quarterly refers to the amount of interest earned quarterly on an account or investment where the interest earned is also reinvested. and is useful in calculating fixed deposit income because most banks offer quarterly compounding interest on deposits. Real estate, collectibles, commodities, private equity, and derivatives are the most common types of alternative investments. The ending market value of an asset is calculated by adding the interest earned over the investing time period to the asset's beginning market value.