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Exam CWM_LEVEL_2 All Questions
Exam CWM_LEVEL_2 All Questions

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AAFM Chartered Wealth Manager CWM_LEVEL_2 Question # 360 Topic 37 Discussion

CWM_LEVEL_2 Exam Topic 37 Question 360 Discussion:
Question #: 360
Topic #: 37

Section C (4 Mark)

You as a Chartered Wealth Manager are approached by a client who is depositing some amount in an account that pays a ROI of 12% p.a compounded monthly. She also has an option of investing in another account that pays ROI 12.76% p.a. compounded annually. She wants to know which of these is a better choice.


A.

12% p.a. compounded monthly is better


B.

12.76% p.a. compounded annually is better


C.

12.76% p.a. is better by .0775 %


D.

12% p.a. compounded monthly is better by .0775%


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