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WRITE IT ON PAPER AND PLEASE SHOW ALL WORK:) The stock market may average around a 10% annual rate each year, but it can vary
WRITE IT ON PAPER AND PLEASE SHOW ALL WORK:)
The stock market may average around a 10% annual rate each year, but it can vary greatly at any given time, In each of 4 scenarios a-d, you deposit $150 per month for 30 years, and the average over 30 years is 10%. Compute the future values for each scenario and determine which results in the highest amount. a) The interest rate stays at 10% for all 30 years b) The interest rate starts at 6% for the first 10 years, increases to 10% for the next 10 years, and then increases to 14% for the last 10 years. c) The interest rate starts at 14% for the first 10 years, decreases to 6% for the next 10 years, and then increases to 10% for the last 10 years. d) The interest rate starts at 14% for the first 10 years, decreases to 10% for the next 10 years, and then decreases to 6% for the last 10 years. e) Which scenario yields the highest return Step by Step Solution
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