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Carlos is willing to invest $30,000.00 for nine years, and is an economically rational investor. He has identified three investment alternatives (X, Y, and Z)
Carlos is willing to invest $30,000.00 for nine years, and is an economically rational investor. He has identified three investment alternatives (X, Y, and Z) that vary in their method of calculating interest and in the annual interest rate offered. Since he can only make one investment during the nine- year investment period, complete the following table and indicate whether Carlos should invest in each of the investments. Note: When calculating each investment's future value, assume that all interest is compounded annually. The final value should be rounded to the nearest whole dollar. Investment Expected future value Interest rate and Method 8% compound interest 10% compound interest 10% simple interest Make this investment
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