Shannon signs a contract with tevin, an unlicensed contractor, to build a deck and gazebo at the rear of her house. this contrac
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Answer:
$12106
Explanation:
Below are the possible return options, and investment options given the schedule and period of investment.
REFER TO ATTACHED FILE FOR THE CHAT
According to this chart, Uncle can get maximum return only from option C. So he should invest everything there, however he needs to pay off 24,000 loan at the end of Year 3. Therefore, he needs to invest an amount that will yield him 24000 at then end of year 3, in Plan B.
That can be calculated by 24000/1.36 = 17647
The balance amount can wait till the beginning of year 2, and then all the amount can be invested in Plan C.
The maximum return at the end of 5 years available will be:
Amount invested in Plan C = 90000 - 17647 (amount saved for the loan payment) = 72353
Return from Plan C at the end of 5yrs = 72353 x 1.66 = $ 12106
