Homework Answers
Frank Rizzo is planning to invest in two plans
(1) Having a return of $250 quarterly yielding
4×250 = $ 1000 a year.
(2)Having a return of $ 500 semiannually yielding
2×500= $1000 a year
Hence, both are yielding equal return in a year and both are invested for seven years , so the return on both are investments are equal.
The best option among the three is
(B) both options are equally attractive.
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