You have $7,000 excess cash to invest after you fully funded your emergency fund. You can choose
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You have $7,000 excess cash to invest after you fully funded your emergency fund. You can choose to use the cash on a T-bill that can be purchased for $6,500 (maturing to value at $10,000 after one year) or you can buy two CDs for $3500 each (that can be purchased with a guaranteed 3% return after 12 months).Which will give a better return (in percentages)? Show work.
Related Book For
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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