Question: Your best friend just received a gift of 5 000 from
Your best friend just received a gift of $5,000 from his favourite aunt. He wants to save the money to use as starter money after school. He can (1) invest it risk-free at 3%, (2) take on moderate risk at 10%, or (3) take on high risk at 14%. Help your friend project the investment’s worth at the end of three years under each investment strategy and explain the results to him.
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