You have an investment proposition in front of you where you would invest 100 dollars in a project and after 2 years you can sell the investment. You would earn 5% paid annually OR you can receive the interest quarterly. Which one should you go for?
Answer with explanationAnswer: Option D
It is better to receive the interest quarterly as then you are receiving money more frequently and can reinvest that right away after quarter 1 instead of waiting the full year and then reinvest.
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