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Your only other investment alternative is a savings account

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As a typical middle-class consumer, you are making monthly payments on your home mortgage (9% annual interest rate), car loan (12%), home improvement loan (14%), and past-due charge accounts (18%). Immediately after getting a $100 monthly raise, your friendly mutual fund broker tries to sell you some investment funds with a guaranteed return of 10% per year. Assuming that your only other investment alternative is a savings account, should you buy

Reference no: EM13339963

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