Question

You have saved 120,000€ and you want to know which is the better option for your money,

1. It is better to spend the money today or invested and receive 122,000 in 3 years with annual simple interest rate of 10%?

(25 points)

2. The bank offers you some options, however, you can't withdraw it for 5 years:
   1. 8% simple interest (15 points)
   2. 6% compounded semiannual (15 points)
   3. 5.5% compounded monthly (15 points)

    Which is the best option of the bank?

i only want the answer for question 2 please.

Answer 1

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