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How much money will you have at the end

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Question - You have £10,000 that you want to invest for the next 30 years. You can choose from two investment plans. Investment Plan A offers you 6 percent interest per year for the next 12 years and 12 percent interest per year for the remaining 18 years of the plan. Investment Plan B offers you 12 percent interest per year for the first 15 years of the plan and 6 percent interest per year for the remaining 15 years of the plan. How much money will you have at the end of 30 years under Investment Plan A and Investment Plan B and which plan will you choose? Assume interest is compounded annually.

Reference no: EM132980603

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