Suppose you are offered the following investment choices: You can invest $500 today and receive $600
Question:
– You can invest $500 today and receive $600 in 5 years. The investment is considered low risk.
– You can invest the $500 in a bank account paying 4% annually.
– What is the implied interest rate for the first choice and which investment should you choose? Show work
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Related Book For 
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
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