Business, 31.01.2022 21:30 dreannaevans2
Your grandmother is choosing between investing in two alternative securities. One
investment pays 4% simple interest, and the other pays 3.75% interest, compounded
annually. Both investments are for 10 years and are similar in every other way (i. e.
risk level). She is leaning towards the 4% investment because of the higher interest
rate. In your efforts to help her decide, how would you explain why the 3.75%
investment is the better choice?
Answers: 2
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Your grandmother is choosing between investing in two alternative securities. One
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