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You have $23,000 that you want to invest at the beginning of each of 5 years. The following alternatives are available to you. On the
You have $23,000 that you want to invest at the beginning of each of 5 years. The following alternatives are available to you. On the basis of available balance at the end of the 5th year, which alternative is the best choice?
Answer choices:
A.) An investment that pays 10% for year 1, 9% for year 2, 8% for year 3, 7% for year 4, and 6% for year 5.
B.) An account that pays 8% per year each year.
C.) An account that pays 6% for year 1, 7% for year 2, 8% for year 3, 9% for year 4, and 10% for year 5.
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