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Exercise 3 You receive a $15,000 signing bonus from your new employer and decide to invest it for two years. Your banker suggests two alternatives,

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Exercise 3 You receive a $15,000 signing bonus from your new employer and decide to invest it for two years. Your banker suggests two alternatives, both requiring a commitment for the full two years The first alternative will earn 8% per year for both years. The second alternative cams 6% for the first year, and 10% for the second year. Interest compounds annually Which should you choose

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