Signing bonus from your new employer

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Reference no: EM131991132

You have just received a $15,000 signing bonus from your new employer and decide to invest it for 2 years. Your banker suggests two alternatives, both of which require a commitment for the full 2 years. The first alternative will earn 8% per year for both years. The second alternative earns 6% for the first year and 10% for the second year. Interest compounds annually. Which alternative should you choose?

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Reference no: EM131991132

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