You have $1,000 and you have 2 investment options: A) You can invest all of your money
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You have $1,000 and you have 2 investment options: A) You can invest all of your money in an account that pays 5%/year or B) You can invest half of your money in an account that pays 8%, but the other half will sit in your checking account earning nothing. If you plan to leave your money in these accounts for 7 years, which one is the better investment and how much money do you have after 7 years?
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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