Computation of value of cost of loan from bank

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Reference no: EM1317407

Which do you prefer: a bank account that pays 5% per year (EAR) for three years or

a) An account that pays 2.5% every six months for three years?

b) An account that pays 7.5% every 18 months for three years?

c) An account that pays 0.5 % per month for three years?

Reference no: EM1317407

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