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Mathematics, 09.12.2021 22:00 zitterkoph

Andrea landed a job, which pays $59,000 a year, right after she graduated with a Bachelor’s Degree in Mechanical Engineering. To help Andrea out, her parents decided to give her $2100. Her friends, River and Simon, also gave her $4000 as a graduation gift. Finally, she receives a signing bonus of 10% of her base salary from her new job. Rather than spend the money Andrea decides to invest it to help save for a down payment for a house. Blue Sun Banking currently has two 7-year investment options. The first is a CD with an APR of 3%, compounded weekly. The second is a mutual fund that has an APR of 3.5%, compounded semi-annually. Which option is a better choice for Andrea and why? If Andrea chooses your option, how much will she have for a down payment at the end of the 7-years?

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