Cannot reinvest the interest

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Suppose you are invested in an (excellent) account that pays 50% interest per year, paid monthly. The account is closed to new investment, so you cannot reinvest the interest. Do you prefer this account to one that pays a single payment of 50% at the end of the year, rather than monthly? Why or why not? Explain your reasoning (you may wish to reference ideas like compounding, NPV, IRR, etc.)

Reference no: EM132492436

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