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Q2. Gary has decided to make an investment in a fund. For this, he approaches four fund managers, A, B, C, and D to know
Q2. Gary has decided to make an investment in a fund. For this, he approaches four fund managers, A, B, C, and D to know about the returns he can expect on an investment of $50,000. The fund managers make him the following offers:
Fund manager A: $60,000 after 1 year
Fund manager B: $70,000 after 2 years
Fund manager C: $80,000 after 3 years
Fund manager D: $90,000 after 4 years
Which fund manager should Gary pick? You can use a discounting rate of 15% compounded annually,
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