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? Show your workings to justify your response.
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? Show your workings to justify your response.
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
As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise the following two (2) clients based on their respective financial situations. (Graded Manually)
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? Show your workings to justify your response.
Option 1: $12,000 in 5 years’ time at 6 percent interest.
Option 2: $15,000 in 2 years’ time at 9 percent interest.
Option 3: $15,000 today. No strings attached.
Option4: $5,000 each year for 2 years at 7 percent interest compounded semi-annually.
SHOW ALL WORKING
NO TABLES
NO EXCEL
SHOW ALLLL WORKING
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