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  3. 2b three years ago your company had to select an...

Question: 2b three years ago your company had to select an...

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2(b) Three years ago, your company had to select an investment option out of the following two alternatives for investing SX Alternative A. A special high interest account: 12% interest /year, compounded monthly Alternative B: A variable interest bond: 10% interest in year 1, 10% in year 2, and 12% in year 3. The company selected Alternative A and today a $50,000 was received. You are curious if Alternative A was the correct choice. If Alternative B was the choice 3 years ago for investing SX, how much could be received?

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