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Business, 12.10.2020 01:01 LtPeridot

Al Ferris has $60,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in 5 years. After consulting with his financial adviser, he has been offered four types of fixed-income investments, which we will label as investments A, B, C, D. Investments A and B are available at the beginning of each of the next 5 years (call them years 1 to 5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40) 2 years later (in time for immediate reinvestment). Each dollar invested in B at the beginning of a year returns $1.70 three years later. Investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns $1.90 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.30 at the end of year 5.

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Al Ferris has $60,000 that he wishes to invest now in order to use the accumulation for purchasing a...
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