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  • 3 years ago

a client comes to you for an investment advice on his $500,000 winnings from the lottery. which of these options would be the best for his investment 6% compounded interest quarterly for 5 years or 8% compounded interest annually for 5 years or 14.5% simple interest for 10 years.

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  1. tkhunny
    • 3 years ago
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    You probably should talk about taxes, first. Anyway...Can you do NONE of it? Calculate the interest earned under each scenario. Note: Part of the question makes no sense at all. Are the two five year periods intended to be consecutive or sequential? If they are not back-to-back, then it is very difficult to compare a 5 year investment with a 10 year investment. What happens in one case with the missing five years?!

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