Based on the available balance at the end of year

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Charlie has $12,000 to invest for a period of 5 years. The following three alternatives are available to him: • Account 1 pays 3.00% for year 1, 6.00% for year 2, 9.00% for year 3, 12.00% for year 4, and 15.00% for year 5, all with annual compounding. • Account 2 pays 15.00% for year 1, 12.00% for year 2, 9.00% for year 3, 6.00% for year 4, and 3.00% for year 5, all with annual compounding. • Account 3 pays interest at the rate of 8.91736% per year for all 5 years.

Based on the available balance at the end of year 5, which alternative is Charlie’s best choice? Alternative 1 Alternative 2 Alternative 3 No alternative is better than the others

Year 5 Balance, Alternative 1: $

Year 5 Balance, Alternative 2: $

Year 5 Balance, Alternative 3: $

Reference no: EM13887840

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Based on the available balance at the end of year : Charlie has $12,000 to invest for a period of 5 years. The following three alternatives are available to him: Account 1 pays 3.00% for year 1, 6.00% for year 2, 9.00% for year 3, 12.00% for year 4, and 15.00% for year 5, all with annual compounding. ..
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