Question
Suppose you invest 2500 in a fund earning 10% simple interest. further suppose that you have the option at any time of closing this account
Suppose you invest 2500 in a fund earning 10% simple interest. further suppose that you have the option at any time of closing this account and opening an account earning compound interest at an annual effective rate of 7%. At what instant should you do so to maximize your accumulation at the end of ten years?
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Handbook Of The Fundamentals Of Financial Decision Making
Authors: Leonard C MacLean, William T Ziemba
1st Edition
9814417343, 978-9814417341
