You have $12,000 in cash. You can deposit it today in an investment fund earning 8.2 per cent semi-annually; or you can wait, enjoy some of it ($1,000), and invest $11,000 in your friends business in 2 years. Your friend promises you a return of 10 per cent on your investment. Whichever alternative you choose, you will need to cash in at the end of 10 years. Assume your friend is trustworthy and that both investments carry the same risk. Which investment will give you the highest future value? Explain your answer.