Alternatively invest these proceeds

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Reference no: EM131332085

You have a savings bond that pays $10,000 in 10 years. What could you sell it for today if interest rates are 5% APR compounded semi-annually.

You could alternatively invest these proceeds at 4.95% APR compounded continuously.

How much would you have in 10 years under this altervative? Which investment scheme would you prefer?

Reference no: EM131332085

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