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Springer Inc. is looking to invest $500,000. The company has two options: (1) Place the money in a corporate savings account at 5% APR for
Springer Inc. is looking to invest $500,000. The company has two options: (1) Place the money in a corporate savings account at 5% APR for 5 years or (2) invest in a very conservitave mutual fund that has an expected return of 6.5% over 6 years. Which option should Springer Inc. choose and why? What amount of money will I have at the end of the term in option 1? Option 2?
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