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Charlie has $14,000 to invest for a period of 5 years. The following three alternatives are available to him: - Account 1 pays 6.00% for
Charlie has $14,000 to invest for a period of 5 years. The following three alternatives are available to him: - Account 1 pays 6.00% for year 1,9.00% for year 2,11.00% for year 3,13.00% for year 4 , and 15.00% for year 5 , all with annual compounding. - Account 2 pays 15.00% for year 1,13.00% for year 2,11.00% for year 3,9.00% for year 4 , and 6.00% for year 5 , all with annual compounding. - Account 3 pays interest at the rate of 10.75576% 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: \$ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is \pm 5
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