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You have $2,000 that you want to invest at the beginning of each of 5 years. The following alternatives are available to you. i) An
You have $2,000 that you want to invest at the beginning of each of 5 years. The following alternatives are available to you.
i) An investment that pays 7% for year 1, 6% for year 2, 5% for year 3, 4% for year 4, and 3% for year 5
ii) An account that pays 3% for year 1, 4% for year 2, 5% for year 3, 6% for year 4, and 7% for year 5
iii) An account that pays 5% per year each year
Based on the available balance at the end of the 5th year, which alternative is the best choice?
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