You Want to Invest $10,000 in a Business Opportunity

question 125

Essay

You want to invest $10,000 in a business opportunity.If you keep the money invested in the business for two years,you will receive $11,000 back.If you keep the money invested in the business for five years,you will receive $13,000 back.Currently,the money is in your savings account,which earns 5% interest,compounded annually.
a.What is the future value of the money if it remains in your savings account for two years?
b.What is the future value of the money if it remains in your savings account for five years?
c.Is it better to invest in the business for two years,five years,or not at all? Why?

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Definitions:

Client's Doubt

A client's uncertainty or questioning regarding aspects of a service or product offering.

Frustration of the Client

The feeling of dissatisfaction or annoyance experienced by clients due to unmet expectations or obstacles in achieving their goals.

Conceptual Phase

The early stage in the lifecycle of a project where ideas are formulated, key objectives are set, and feasibility is evaluated.

Design Phase

A stage in a project where the plans, blueprints, or prototypes are developed before production or construction begins.