Comparing the future value of two investments you HAVE $ 4 5 0 to invest every

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Question:

Comparing the future value of two investments

you HAVE $

450

to invest every month for the next

5

years. there are two alternative investments you are being offered:

Investment A offers an annual rate of

5.25 % .

for this your account will be debited monthly and interest is compounded on the same frequency as the debiting.

Investment B offers an annual rate of

4.95 % .

for this your accoun will be debited daily and interest is compounded on the same frequency as the debiting.

which investment leaves you better off at the end of the

5

years? how much more is the better investment earning compared to the worse investment?

show the excel function and calculations to prove your case.

Related Book For answer-question

Financial Modeling

ISBN: 9780262027281

4th Edition

Authors: Simon Benninga

See More Books

Posted Date: Apr 15, 2024 05:15 AM

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Comparing the future value of two investments you HAVE $ 4 5 0 to invest every

Question:

Expert Answer:

To compare the future value of the two investments we can use the Excel FV function to calculate the ... View the full answer

Financial Modeling

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