The private entrepreneur owns $ 3,000. He is having two options: put money in the bank at 8% per year for 2 years, or keep them at home (the discount rate is 10%) because these funds are temporarily not used in business (the business produces a 10% return on investment).

Task:

1. determine the amount accumulated at the end of the period in first case, make calculations using the methods of simple and complex interest

2. Determine the current value of $ 3000 in 2 years at a discount rate of 10%

3. Justify the advantages and disadvantages of each solution.