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Charlie has $10,000 to invest for a period of 5 years. The following three alternatives...

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Finance

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Charlie has $10,000 to invest for a period of 5 years. The following three alternatives are available to him: Account 1 pays 2.00% for year 1, 4.00% for year 2,5.00% for year 3, 6.00% for year 4, and 7.00% for year 5, all with annual compounding. Account 2 pays 7.00% for year 1, 6.00% for year 5.00% for year 3, 4.00% for year 4, and 2.00% for year 5, all with annual compounding. Account 3 pays interest at the rate of 4.78581% per year for all 5 years. Based on the available balance at the end of year 5, which alternative is Charlie's best choice? Year 5 Balance, Alternative 1: $ Year 5 Balance, Alternative 2: $ Year 5 Balance, Alternative 3: $

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