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Your brother-in-law is inviting you to invest some money with him. He argues that he can beat whatever effective yield you are getting form your
Your brother-in-law is inviting you to invest some money with him. He argues that he can beat whatever effective yield you are getting form your mutual fund. He is asking you to invest $10,000 today and promises to pay you back $15,000 in five years. If your mutual fund pays you an average annual rate of return of 8% is your brother-in-law telling the truth? 8.4472%
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