Suppose that you have $6000 to invest. Which investment yields the greater return over 4 years: 8.25% compounded quarterly or 8.3% compounded semiannually?
1 Answer
May 23, 2017
Of course quarterly investment yields more
Explanation:
Your final Money will be
under compounded quarterly option. Note that there are four quarters in each year and your investment is 4 years.
Under semiannual option:
Note that there are two semiannual periods in one year for a duration of 4 years.
Therefore, your quarterly compounding option yields more.