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You have $10,000 you would like to invest. Alt 1: You can invest the $10,000 today for 5 years in an account that earns 5%
You have $10,000 you would like to invest. Alt 1: You can invest the $10,000 today for 5 years in an account that earns 5% APR (compounded annually). Alt 2: Alternatively, you can invest the $10,000 today for 5 years in an account that earns 3% APR (compounded monthly). Which account will accumulate a greater amount in 5 years and by how much (as see from year 5) ?
Group of answer choices Choose Alt 1: Better by $1,147 Choose Alt 2: Better by $1,351 Choose Alt 2: Better by $1,432 Choose Alt 1: Better by $1,286
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