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Traci Wants to Have $16,000 Six Years from Now and Wants

Question 3

Multiple Choice

Traci wants to have $16,000 six years from now and wants to deposit just one lump sum amount today.The annual percentage rate applicable to her investment is 6.8 percent.Which one of the following methods of compounding interest will allow her to deposit the least amount possible today?


A) annual
B) daily
C) quarterly
D) monthly
E) continuous

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