Revision as of 22:51, 17 November 2023 by Admin (Created page with "'''Solution: D''' The value of 1 invested with bank P after three years is 1.04<sup>3</sup> + 0.02 = 1.144864. The yield from Bank Q satisfies <math display = "block"> 1.144864=\left(1+i\right)^{3}\Longrightarrow i=1.144864^{1/3}-1=0.04613=4.6\% </math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 17'23
Answer
Solution: D
The value of 1 invested with bank P after three years is 1.043 + 0.02 = 1.144864. The yield from Bank Q satisfies
[[math]]
1.144864=\left(1+i\right)^{3}\Longrightarrow i=1.144864^{1/3}-1=0.04613=4.6\%
[[/math]]
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