Yani has $12,000 for investment purposes. His bank has offered the following three choices: Choice 1. Aspecial savings certificate that will pay $180 each month for 5 years and a lump sum payment at...


Yani has $12,000 for investment purposes. His bank has offered the following three choices:<br>Choice 1. Aspecial savings certificate that will pay $180 each month for 5 years and a lump sum payment at the end of 5 years of<br>$13,000<br>Choice 2. Buy a share of a racehorse for $12,000 that will be worth $24,000 in 5 years<br>Choice 3. Put the money in a savings account that will have an interest rate of 12% per year compounded monthly<br>Use an annual worth analysis to make a recommendation to Yani.<br>Click here to access the TVM Factor Table Calculator<br>What is the annual worth of each choice?<br>Choice 1, Certificate: $<br>Choice 2, Racehorse: $<br>Choice 3, Savings Account: $<br>Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +4.<br>Which choice should be recommended to Yani?<br>

Extracted text: Yani has $12,000 for investment purposes. His bank has offered the following three choices: Choice 1. Aspecial savings certificate that will pay $180 each month for 5 years and a lump sum payment at the end of 5 years of $13,000 Choice 2. Buy a share of a racehorse for $12,000 that will be worth $24,000 in 5 years Choice 3. Put the money in a savings account that will have an interest rate of 12% per year compounded monthly Use an annual worth analysis to make a recommendation to Yani. Click here to access the TVM Factor Table Calculator What is the annual worth of each choice? Choice 1, Certificate: $ Choice 2, Racehorse: $ Choice 3, Savings Account: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +4. Which choice should be recommended to Yani?

Jun 06, 2022
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