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The bank has a promotion of either: $100 deposit and earn 35% interest for 3 years OR $450 deposit and earn 13% for 1
The bank has a promotion of either: $100 deposit and earn 35% interest for 3 years OR $450 deposit and earn 13% for 1 year 1) Which investment option is the option (ignoring reinvestment after year 1)? Assume a market rate of 10%. 2) Explain when would you be indifferent to either option (ignoring reinvestment after year 1)?
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To compare the two investment options lets calculate the future value FV of each option after the sp...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
