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Samantha plans to invest some money so that she has $5,500 at the end of three years. Option A Option B Option C Option D
Samantha plans to invest some money so that she has $5,500 at the end of three years.
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| Option A | Option B | Option C | Option D |
| APR | 4.20% | 4.90% | 5.20% | 5.40% |
| m/per year | 365 | 12 | 4 | 1 |
- How much should she invest today given the choices above?
- What is her best choice?
- What is EAR each account is earning? Support your decision in question 2.
- Three years later: she has $5,500. She did not use this money as she intended, so she decided to reinvest this sum again. Calculate the final balance in each account using all four options at the end of year 1, year 5, year 20.
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Business Law With UCC Applications
Authors: Gordon Brown, Paul Sukys
13th Edition
0073524956, 978-0073524955
