Discussion: Time Value of Money

Anonymous
timer Asked: Oct 9th, 2018
account_balance_wallet $10

Question Description

Assume you have $12,000 in cash. You can deposit it today in a mutual fund earning 8.2% semiannually, or you can wait, enjoy some of it, and invest $11,000 in your brother's business in two years. Your brother is promising you a return of at least 10% on your investment. Regardless of the investment option you choose, you will have to cash in at the end of 10 years. Assume your brother is trustworthy and that both investments carry the same risk. Which investment option will you choose and why? Justify your answer using time value of money calculations and concepts.

Support your initial post and your response posts with scholarly sources cited in APA style.

Tutor Answer

Robert__F
School: Duke University

I’m working on the...

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Anonymous
Excellent job

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