Tom is interested in getting advice on what is the best outcome at the end of a
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Tom is interested in getting advice on what is the best outcome at the end of a six-year period for investing a sum of money in the following options, given a 9% per annum earning rate. What is the preferred option?
a. Invest $8,000 as a lump sum today.
b. Invest $5,000 at the end of each of the next six years.
c. Invest a lump sum of $6,000 today and $1,000 at the end of each of the next six years.
d. Invest $1,200 at the end of years one, three and five
Related Book For
Personal Financial Planning
ISBN: 9780357438480
15th Edition
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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