as the Fund manager for bank of Trinidad and Tobago Limited, you are to advise the following two clients based on their respective financial situations a) your best friend has asked to assist him in making the best investment out of the following options. which would you advise him to choose and why Option 1 $12,000 in 5 year's time at 6% interest Option 2 $15,000 in two year's time at 9% Option 3 $15,000 today. no strings attached Option 4 $5,000 each year for 2 years at 7% percent compounded semi- anually
as the Fund manager for bank of Trinidad and Tobago Limited, you are to advise the following two clients based on their respective financial situations a) your best friend has asked to assist him in making the best investment out of the following options. which would you advise him to choose and why Option 1 $12,000 in 5 year's time at 6% interest Option 2 $15,000 in two year's time at 9% Option 3 $15,000 today. no strings attached Option 4 $5,000 each year for 2 years at 7% percent compounded semi- anually
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4% compound semi-annually?
2. as the Fund manager for bank of Trinidad and Tobago Limited, you are to advise the following two clients based on their respective financial situations
a) your best friend has asked to assist him in making the best investment out of the following options. which would you advise him to choose and why
Option 1 $12,000 in 5 year's time at 6% interest
Option 2 $15,000 in two year's time at 9%
Option 3 $15,000 today. no strings attached
Option 4 $5,000 each year for 2 years at 7% percent compounded semi- anually
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