Yani has ($12),000 for investment purposes. His bank has offered the following three choices: a. A special
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Yani has \($12\),000 for investment purposes. His bank has offered the following three choices:
a. A special savings certificate that will pay \($100\) each month for 5 years and a lump sum payment at the end of 5 years of \($13\),000
b. Buy a share of a racehorse for \($12\),000 that will be worth \($20\),000 in 5 years
c. Put the money in a savings account that will have an interest rate of 12 percent per year compounded monthly.
Use a present worth analysis to make a recommendation to Yani.
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Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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