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1. Danielle Meijer has a $10,000 certificate of deposit (CD) she inherited from her Grandmother. Currently, the CD is held by the credit union of
1. Danielle Meijer has a $10,000 certificate of deposit (CD) she inherited from her Grandmother. Currently, the CD is held by the credit union of which Danielle is a member. The credit union will pay Danielle 2.0% on the CD if she agrees to keep her funds on deposit with them for a period of five years. Danielle's friend Isabelle Elias has been talking to her about investing in a new start-up restaurant that Isabelle is opening. Isabelle tells Danielle that she will pay her 12.5% per year for five years from the restaurant's profits if she invests $10,000 in her new start-up restaurant. At the end of five years, Isabelle would also return Danielle's initial $10,000 investment to her To help her make an informed decision, complete the two alternative investment yield charts Danielle has begun to prepare, and then answer the questions that follow. Year 1 Year 2 Year 3 Year 4 Year 5 2.0% Credit Union Deposit Certificate of Deposit Yield Beginning Value Investment Earnings Yearend Total Investment Value $10,000 Year 1 Year 2 Year 3 Year 4 Year 5 12.5% Restaurant Start-up Investment Start-Up Restaurant Yield Beginning Value Investment Earnings Yearend Total Investment Value $10,000
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