Yani has 12000 for investment purposes his bank has offered, Ask an Expert

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Yani has $12,000 for investment purposes. His bank has offered the following three choices:

a. A special savings certificate that will pay $100 each month for 5 years and a lump sum payment at the end of 5 years of $13,000.

b. Buy a share of a racehorse for $12,000 that will be worth $20,000 in 5 years.

c. Put the money in a savings account that will have an interest rate of 12% per year compounded monthly.

Use a future worth analysis to make a recommendation to Yani. Please show all excel steps and formulas.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92384646

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