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Two of your friends presented an investment product where an initial cash payment is required. Friend A tells you that his product promises to return 1,000,000 php after 5 years, while Friend B tells you that his product promises to return 1,100,000 php in 5 years and six months. If the rate for both investment is 9% compounded annually, which option requires a smaller initial cash requirement? A Friend B's product B could not be determined. Friend A's product D both requires the same initial cash requirement.

Two of your friends presented an investment product where an initial cash payment is required. Friend A tells you that his product promises to return 1,000,000 php after 5 years, while Friend B tells you that his product promises to return 1,100,000 php in 5 years and six months. If the rate for both investment is 9% compounded annually, which option requires a smaller initial cash requirement? A Friend B's product B could not be determined. Friend A's product D both requires the same initial cash requirement.

Intermediate Algebra
Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 27PS
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Two of your friends presented an investment product where an initial cash payment is required. Friend A tells you that his product promises to return 1,000,000 php after 5 years, while Friend B tells you that his product promises to return 1,100,000 php in 5 years and six months. If the rate for both investment is 9% compounded annualy, which option requires a smaller initial cash requirement? A Friend B's product B) could not be determined. Friend A's product D both requires the same initial cash requirement.
Transcribed Image Text:Two of your friends presented an investment product where an initial cash payment is required. Friend A tells you that his product promises to return 1,000,000 php after 5 years, while Friend B tells you that his product promises to return 1,100,000 php in 5 years and six months. If the rate for both investment is 9% compounded annualy, which option requires a smaller initial cash requirement? A Friend B's product B) could not be determined. Friend A's product D both requires the same initial cash requirement.
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