show how to calculate on Ba 2 calculators only! LyftUrCash...
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show how to calculate on Ba 2 calculators only!
LyftUrCash offers a unique service of connecting lenders and borrowers with no banking middleman, Fred is currently considering 2 offers both of which he evaluates using an annual discount rate of 6% The first offer will guarantee him $6,000 in 5 years and the second will provide $11,000 in 7 years. He will use Present Value analysis to determine what to bid for each contract Alternatively, he could invest those funds in a mutual fund for 5 years that historically has had an annual return of 8% With that investment, he is considering both reinvesting what he earns each year or using the annual earnings to cover his car payments How much would Fred earn over the life of the mutual fund investment if he reinvests the earnings each year rather than withdrawing them and the mutual fund maintains its average rate of return each year
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