9.Which of the following statements is TRUE?
a. $100 placed in a bank account which pays a 3 percent compound rate will double faster if the bank pays interest monthly rather than daily.
b. If you were borrowing money from a bank, and the simple interest rate was 10 percent with daily compounding, you would be better off if the bank used a 365-day year rather than a 360-day year.
c. The present value of an annuity due will be smaller than the PV of an ordinary annuity, other things held constant.
d. If you were borrowing money from a bank, and the simple interest rate was 10 percent, you would be better off if the bank used annual rather than monthly compounding.Get Finance homework help today
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