You have $2,000 that you want to invest at the beginning of each of 5 years. The
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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:
• An investment that pays 7 percent for year 1, 6 percent for year 2, 5 percent for year 3, 4 percent for year 4, and 3 percent for year 5.
• An account that pays 3 percent for year 1, 4 percent for year 2, 5 percent for year 3, 6 percent for year 4, and 7 percent for year 5.
• An account that pays 5 percent per year each year.
On the basis of available balance at the end of year 5, which alternative is the best choice?
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Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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