You have $$23,500$ in cash. You can deposit it today in a mutual fund earning $5\mathrm{.}75\%$ interest, compounded semi$-$annually. Or$,$ you can wait, enjoy some of it$,$ and invest $$21,000$ in your classmate's start$-$up business in $2$ years. Your classmate is promising you a return of $10\%$ APR on your investment. Whichever investment you choose, you will need to cash in at the end of $10$ years from today. Assume your classmate is trustworthy $($so no worries $-$ you trust you will get your $10\%)$ and both investments carry the same risk! Which one will you choose? $($Please do not base your answer on how much fun you will have spending that $$2,500$ over those $2$ years! That $$2,500$ is gone. It should NOT factor into your answer.$)$

NOTES:

Please provide your calculator inputs and output for both options $($Mutual Fund and Classmate$).$ Even if you use the formulas instead of the calculator, please still provide the inputs$/$output as follows: $N=,\frac{\text{I}}{Y}$ as $\%),$ PV $=,$ PMT $=,$ FV $=...$ Remember, your CY and PY calculator values should be set to $1.$

Please enter ALL numbers as POSITIVE numbers even though you would need to enter a number as negative in your calculator!

Option $1.$ Mutual Fund

$N=$

$\frac{\text{I}}{Y}=($as percent, e$.$g$.10\mathrm{.}25$ for $10\mathrm{.}25\%)$

$PV=$

PMT $=$

$FV=$

Option $2.$ Classmate

$N=$

$\frac{\text{I}}{Y}=(as$ percent, $e.g.10\mathrm{.}25$ for $10\mathrm{.}25\%)$

$PV=$

$PMT=$

$FV=$

Which option are you selecting?

Classmate

Mutual Fund