Anna also wants to travel after graduation but she isn't working while in school so she won't be able to put money aside regularly.However, her grandmother gave her the generous gift of $2500 for her birthday and suggested she invest it in a GIC because it's low risk.She shopped around and found a 4 year GIC investment that earns 2.8% interest annually.

How much will Anna have at the end of her four year investment?

How much interest will be earned?

Anna was pretty disappointed with how little money she would have and so she started looking at other investment options that involve higher risk but would also offer more possible return.Her bank's financial advisor suggested a mutual fund the she said was only moderately risky but had a record of 8.5% annual return.

Assuming the mutual fund preformed as well as it has in the past, how much would Anna's investment of $2500 potentially be after 4 years if she decided to go with this option?

How much interest will be earned?