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You have $ 1 2 , 0 0 0 in cash. You can deposit it today in a mutual fund earning 8 . 9 0
You have $ in cash. You can deposit it today in a mutual fund earning percent semiannually, or you can wait, enjoy some of
it and invest $ in your brother's business in two years. Your brother is promising you a return of at least percent on your
investment. Whichever alternative you choose, you will need to cash in at the end of years. Assume your brother is trustworthy and
both investments carry the same risk. Also assume you will not invest the $ in the first two years. Round intermediate
calculations to decimal places, eg and final answers to decimal places, eg
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What would be the future value of the mutual fund investment?
Future value of investment $
What would be the future value of investing in your brother's business?
Future value of investment $
Which one would yield the largest amount in years?
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