You have been offered the chance to invest in a herbal tea enterprise which promises to cure Covid-19. The up-front cost is $500 000 and the venture is to capitalise on the fame of the Tom Hanks and his Covid recovery, who is also said to be investing.

a) The promoter offers investors $300 000 back in three years and $350 000 in five years. You think you require a 11.5% return on this type of investment, is this a good investment?

b) Is this a better option?

c) 5% interest rate how long does it take to double your money?

d) What is the relationship between time and future value of any investment?