Show the effect of interest rate on future values (Learning Objective 3)

Your best friend just received a gift of $5,000 from his favorite aunt. He wants to save the money to use as starter money after college. He can (1) invest it risk-free at 3 /o, (2) take on moderate risk at 8%, or (3) take on high risk at 16%. Help your friend project the investment’s worth at the end of four years under each investment stiategy and explain the results to him.