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3.4-11.* Al Ferris has $60,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in 5 years.
3.4-11.* Al Ferris has $60,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in 5 years. After consulting with his financial adviser, he has been offered four types of fixed-income investments, which we will label as investments A, B, C, D. Investments A and B are available at the beginning of each of the next 5 years (call them years 1 to 5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40 ) 2 years later (in time for immediate reinvestment). Each dollar invested in B at the beginning of a year returns $1.70 three years later. Investments C and D will each
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