146k views
1 vote
You have $90,000 in cash. You can deposit it today in a mutual fund earning 7.5

percent semiannually; or you can wait, enjoy some of it, and invest $12,000 in your
brother's business after two years. Your brother is promising you a return of at least 12
percent on your investment. Whichever alternative you choose, you will need to cash
in at the end of 8 years. Assume your brother is trustworthy and that both investments
carry the same risk. Which one will you choose?

1 Answer

5 votes

I will go to the Bahamas instead and think about later

User Phiggy
by
8.6k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.