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1. Look again at Solved Problem. Would the answer change if the second CD pays an interest rate of 1% the first two years and 10% in the third year? Briefly explain.

2. In this problem, suppose that in addition to the two CDs described in Solved Problem, we have a third CD in which you might invest-one that pays an interest rate of 3% the first two years and an interest rate of 7% the third year. How does the future value of this investment compare to the other two? Which is the best investment?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92060158

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