Question
Mr. Abdullah is planning to invest $ 100,000 and looking for a good investment opportunity. that will maximize the return with minimum time. Following options
Mr. Abdullah is planning to invest $ 100,000 and looking for a good investment opportunity. that will maximize the return with minimum time. Following options are available for him. Calculate and analysis the return from each investment option and advise him by considering the Rate of return and time value of money.
Option 1 Deposit $100,000 in an account earning 12% simple interest for 6 years
Option 2 Deposit $100,000 in an account earning 7% compound interest for 4 years
Option 3 Deposit $100,000 in an account earning 14% simple interest for 3 years
Option 4 Deposit $100,000 in an account earning 5% compound interest for 6 years
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