4. As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise the following two (2) clients based on their respective financial situations. a) Your best friend has asked to assist him in making the best investment out of the following options. Which would you advise him to choose and why? Show your workings to justify your response. Option 1: $12,000 in 5 years’ time at 6 percent interest. Option 2: $15,000 in 2 years’ time at 9 percent interest. Option 3: $15,000 today. No strings attached. Option4: $5,000 each year for 2 years at 7 percent interest compounded semi-annually.
4. As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise the following two (2) clients based on their respective financial situations. a) Your best friend has asked to assist him in making the best investment out of the following options. Which would you advise him to choose and why? Show your workings to justify your response. Option 1: $12,000 in 5 years’ time at 6 percent interest. Option 2: $15,000 in 2 years’ time at 9 percent interest. Option 3: $15,000 today. No strings attached. Option4: $5,000 each year for 2 years at 7 percent interest compounded semi-annually.
Chapter15: Mutual And Exchange Traded Funds
Section: Chapter Questions
Problem 4LTAI
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4. As the Fund Manager for Bank of Trinidad and Tobago Limited, you are to advise the following two (2) clients based on their respective financial situations.
a) Your best friend has asked to assist him in making the best investment out of the following options. Which would you advise him to choose and why? Show your workings to justify your response.
Option 1: $12,000 in 5 years’ time at 6 percent interest.
Option 2: $15,000 in 2 years’ time at 9 percent interest.
Option 3: $15,000 today. No strings attached.
Option4: $5,000 each year for 2 years at 7 percent interest compounded semi-annually.
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