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7. Assume that your grandparents want to invest S10,000 today for 10 years and are asking for your advice. They will choose only one of
7. Assume that your grandparents want to invest S10,000 today for 10 years and are asking for your advice. They will choose only one of the following two investment choices: A) B) Invest the $10,000 at 8% for the first 5 years, then 2% for the remaining 5 years. OR Invest the $10,000 at 5% for the entire 10 years Which choice do you prefer and why? Calculations are needed for both choices A) and B). Show all your work and all your calculations. Begin with the general formula
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