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Charlie has $12,000 to invest for a period of 5 years. The following three alternatives are available to him: Account 1 pays 4.00% for year
Charlie has $12,000 to invest for a period of 5 years. The following three alternatives are available to him: Account 1 pays 4.00% for year 1, 7.00% for year 2, 10.00% for year 3, 11.00% for year 4, and 14.00% for year 5, all with annual compounding. Account 2 pays 14.00% for year 1, 11.00% for year 2, 10.00% for year 3, 7.00% for year 4, and 4.00% for year 5, all with annual compounding Account 3 pays interest at the rate of 9.14593% per year for all 5 years. Based on the available balance at the end of year 5, which alternative is Charlie's best choice? Year 5 Balance, Alternative 1: $ Year 5 Balance, Alternative 2: $ Year 5 Balance, Alternative 3: $
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