b) You have savings of $25,000 that you intend to invest in a five year term...

 

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b) You have savings of $25,000 that you intend to invest in a five year term deposit with a three fixed interest rate of 7.5% calculated at the end of each year. Your bank offers you other choices: $30,000 in five years $6,000 at the end of each of the next five years $30,000 now Which investment would you choose? Carefully explain your answer and include financial justification. (i) (ii) (iii) b) You have savings of $25,000 that you intend to invest in a five year term deposit with a three fixed interest rate of 7.5% calculated at the end of each year. Your bank offers you other choices: $30,000 in five years $6,000 at the end of each of the next five years $30,000 now Which investment would you choose? Carefully explain your answer and include financial justification. (i) (ii) (iii)

Answer rating: 100% (QA)

I would choose option iii 30000 now The reason I would choose this option is b... View the full answer