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An investor is considering depositing $10,000 and making additional $400 annual payment for the next five years and this investment provides 5% annual interest. Or

An investor is considering depositing $10,000 and making additional $400 annual payment for the next five years and this investment provides 5% annual interest. Or he can invest $12,000 today and earning 4% annual interest. determine which one is the better investment opportunity?

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