I can borrow money at a rate of 8% per year, but that I only earn 2% per year on money I loan. A friend has recently offered me an investment opportunity; if I make a $10,000 investment today, then I will receive a guaranteed $10,500 in one year. I currently have $10,000 in the bank, but I plan on consuming $8,000 meaning that I only have $2,000 that I could invest. Can/should make the investment? What is the maximum amount I would be willing to borrow to make this investment? How much consumption would I need to be willing to forego to make the investment?