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You are offered three investments. The first ensures you will earn 19% annually, the second will earn 18.5% compounded quarterly, and the third will earn 17% co

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1 Answer

 It depends on length of investment:
 
  Take for 10 years investment:
 
   Balance of accounts after 10 yeras
  1st
 
 A= 1000 ( 1+ 10(0.19) ) = 2900
 
2nd
    A = 1000( 1 + 0.185/4) ^( 10* 4)  = 6101.26
 
3rd
    A = 1000 ( 1 + 0.17/52) ^520=5458. 80
 
For 10 years investment 2nd one is the best( highest Yield)