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EFFECT OF INTEREST RATE ON FUTURE VALUE Michael Lim and Daniel Tan are good friends. Both have set aside S$100,000 for investment. Michael is financially conservative and prefers to keep his investment in a fixed deposit which earns a paltry 1% per year. Daniel is less risk-averse and prefers to invest in riskier investments that earn 6% per year. Calculate the difference in the amounts they get at the end of 20 years

EFFECT OF INTEREST RATE ON FUTURE VALUE Michael Lim and Daniel Tan are good friends. Both have set aside S$100,000 for investment. Michael is financially conservative and prefers to keep his investment in a fixed deposit which earns a paltry 1% per year. Daniel is less risk-averse and prefers to invest in riskier investments that earn 6% per year. Calculate the difference in the amounts they get at the end of 20 years

Essentials Of Investments
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
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EFFECT OF INTEREST RATE ON FUTURE VALUE Michael Lim and Daniel Tan are good friends. Both have set aside S$100,000 for investment. Michael is financially conservative and prefers to keep his investment in a fixed deposit which earns a paltry 1% per year. Daniel is less risk-averse and prefers to invest in riskier investments that earn 6% per year. Calculate the difference in the amounts they get at the end of 20 years.

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