Hugh Wallace has the following information regarding three investment options. Each investment option involves the same one-year period. What nominal rate of return will Hugh earn if he invested in option 1?
A) 0.79%
B) 3.22%
C) 0.32%
D) 6.67%

Question

Hugh Wallace has the following information regarding three investment options. Each investment option involves the same one-year period.  What nominal rate of return will Hugh earn if he invested in option 1?
A) 0.79% 
B) 3.22% 
C) 0.32% 
D) 6.67%

Quizplus · Accepted Answer

Option 1 has a nominal rate of return of 3.2%, which is the highest rate of return out of the three options. Therefore, it is the best choice for Hugh to invest in.

Hugh Wallace Has the Following Information Regarding Three Investment Options