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What would be the calculations for the figures

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Question - Sina believes he can invest his savings in a mutual fund and earn a 6.5% annual return. Since it is significantly more than earning 3.75% annually by entering an agreement to deposit $500 monthly into a guaranteed savings account for at least 18 months, Sina is leaning towards the mutual fund option. He wants advice on the risks and benefits of each investment strategy and a recommendation on which direction to proceed in. What would be the calculations for the above figures?

Reference no: EM133184752

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