Consider two investments:1. Invest $1000 and receive $110 at the end of each month for the next 10 months. 2. Invest $1200 and receive $130 at the end of each month for the next 10 months. If this were your money, and you wanted to earn at least 12% interest on it, which investment would you make, if any? Solve the problem by annual cash flow analysis.

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A:

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Q: Consider two investments: Invest $1,000 and receive $110 at the end of each month for the next 10…

A: The future worth of both the options can be calculated as follows : Results obtained :