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John has r 1 0 0 0 0 and has approached you for some advice. He would like to invest this amount for a period
John has r and has approached you for some advice. He would like to invest this amount for a period of two years only. He has a choice of investing in one of two investments and would like you to advise him on the best investment.
Investment A: will earn a return of per annum simple interest
Investment B: will earn a return of per annum compound interest
Additional information:
Present value:
Investment A
Year
Year
Investment B
Year
Year
Future value
Investment A
Year
Year
Investment B
Year
Year
By calculating the value of each of the investments after two years, advise John as to which is the better investment
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