Section C (4 Mark)You as a Chartered Wealth Manager are approached by a client who...

Vendor: AAFM
Product: CWM_LEVEL_2
Update on: Jul 30, 2025
Questions: 1259

AAFM CWM_LEVEL_2 Question Answer

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.

12% p.a. compounded monthly is better

12.76% p.a. compounded annually is better

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

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