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Jennifer won a $40 000 lottery and is considering investing her winnings. Her two options are shown below: Option #1: Deposit $25 000 into a
Jennifer won a $40 000 lottery and is considering investing her winnings. Her two options are shown below: Option #1: Deposit $25 000 into a high-interest savings account at 3% compounded annually for 10 years and invest the other $15 000 into a Guaranteed Investment Certificate which earns 5.2% interest compounded quarterly for a term of 10 years. Option #2: Purchase a 5 year $40 000 Canada Savings Bond (CSB) with a rate of 4% interest compounded monthly and then reinvest the money into her Tax Free Savings Account (TFSA) which earns 1.2% interest compounded semi-annually for the remaining 5 years. Determine the future value of each investment by completing a chart or showing your formula calculations
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