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2 . Rachel is considering two different investments. Under Investment 1 , Rachel will get a cash receipt ( a payment to her ) of
Rachel is considering two different investments. Under Investment Rachel will get a cash receipt a payment to her of $ every months for years. Under Investment Rachel will get a cash receipt a payment to her of $ every year for years. Rachel uses an interest rate of annually, but knows that this annual rate may be adjusted for the number of periods in each year.
Which statement is true?
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Rachel should just get a savings account at a bank.
Rachel will value the investment choices using present value of an annuity.
Racel will value the investment choices using present value of $
Rachel cannot really compare these two investments.
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