Darlene can buy one of two investments. The first pays $1,000 at the end of 3 years. The second pays $400 at the end of each of the next two years and $200 in the final year. Each investment costs $800. If interest rates are 4%, which investment should Darlene buy?

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The Answer of Darlene can buy one of two investments. The first pays $1,000 at the end of 3 years. The second pays $400 at the end of each of the next two years and $200 in the final year. Each investment costs $800. If interest rates are 4%, which investment should Darlene buy?

Darlene Can Buy One of Two Investments