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Homework answers / question archive / Suppose that we have BD1200 to invest for five years, and we have two choices: • Interest rate of 5% (0

Suppose that we have BD1200 to invest for five years, and we have two choices: • Interest rate of 5% (0

Economics

Suppose that we have BD1200 to invest for five years, and we have two choices: • Interest rate of 5% (0.05) compounded semi-annually, or • Interest rate of 5% (0.05) compounded continuously. Which one should we do?

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