Bud Jett (get it…like budget) has two options for an investment. a. OPTION 1 – Invest $2,000 per month for 20 years at the beginning of each year and earn 8% annually. b. OPTION 2 – Invest $2,000 per month for 20 years at the end of each year and earn 8% annually. Calculate both options and select which investment is better for our financial cartoon friend: Bud Jett.
Bud Jett (get it…like budget) has two options for an investment. a. OPTION 1 – Invest $2,000 per month for 20 years at the beginning of each year and earn 8% annually. b. OPTION 2 – Invest $2,000 per month for 20 years at the end of each year and earn 8% annually. Calculate both options and select which investment is better for our financial cartoon friend: Bud Jett.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(Question #5) Bud Jett (get it…like budget) has two options for an investment.
a. OPTION 1 – Invest $2,000 per month for 20 years at the beginning of each year and earn 8% annually.
b. OPTION 2 – Invest $2,000 per month for 20 years at the end of each year and earn 8% annually.
Calculate both options and select which investment is better for our financial cartoon friend: Bud Jett.
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