Which alternative would logical and sensible investor choose

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Question 1: Which of the following alternatives would a logical and sensible investor choose?

Option A. Borrow money with an interest rate of 7% with monthly compounding, rather than borrowing money with an interest rate of 7% with annual compounding

Option B. Invest money with an interest rate of 5% with annual compounding, rather than investing money with an interest rate of 5% with monthly compounding

Option C. Borrow money with an interest rate of 9% with quarterly compounding, rather than borrowing money with an interest rate of 9% with semiannual compounding

Option D. Invest money with an interest rate of 5% with quarterly compounding, rather than investing money with an interest rate of 5% with semiannual compounding

Reference no: EM132505934

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