Essay: Types of investment alternatives

Sample Essay

Since there are a number of investment alternatives that a person has in life, it is wise that all the risks and benefits are determined and then a decision is made. In this case, the 47-year-old investor has two choices in life, a lump sum gift of $100,000 or a periodic payment of $750 per month. The choice to make should not be determined by the amount of money at the start but by the number of returns, each alternative will have at the end of the given period.  The interest rate for both alternatives is 5% compounded monthly.

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