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Determine which of these two alternatives offers

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Question - An investor is considering making an investment and is deciding between two possible alternatives:

a. A 6-month investment which can be purchased at a simple rate of discount of 4.16% p.a.

b. A bank deposit, for 6 months, offering an effective rate of interest of 4.45% p.a.

Required - Determine which of these two alternatives offers the higher rate of return.

Reference no: EM133170456

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