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You would like to invest your savings in a bank and receive various offers. Your...

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Finance

You would like to invest your savings in a bank and receive various offers. Your capital, which you want to invest, is 300,000 euros. Calculate the capital at the end of the term for each offer. a.) The interest rate is 4% p.a. for a term of 2 years. b.) With a term of 2 years, the interest rate is 8% for the entire two-year period. The interest is not annualized (p.a.). c.) the interest rate is 2% per half year, the term is 2 years and the distributions are made every six months. The interest is not annualized (p.a.). d.) Use the information from parts a.) and b.) to calculate the interest rate that would be necessary to obtain the same capital at the end of the term as in part c.). how can the result be explained? e.) Explain why the offer from part c.) gives you a higher capital at the end of the Term brings than the offer from task part a.).

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