Cost-Volume-Profit Elements and
Your best friend just received a gift of $7,000 from his favorite aunt. He
wants to save the money to use as "starter" money after college. He
can invest it (1) risk-free at 6%, (2) taking on moderate risk at 8%, or (3)
taking on high risk at 14%.
Help your friend project the investment's worth at the end of four years under
each investment strategy and explain the results to him.