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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
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
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