You have just inherited $100,000 tax-free. You have three options. Invest in a savings account at your local bank at 1% annual return. Invest the
You have just inherited $100,000 tax-free. You have three options. Invest in a savings account at your local bank at 1% annual return. Invest the S&P 500 with an anticipated return of 12% annual return, though there is always some risk as the past is not always an indication of the future.. Invest in your business with an anticipated return of 24%, but with moderate risk due to the changing business environment. Which option would you pursue and why? Assuming these numbers for annual return are correct, how often will each of these investments double in the next 72 years?
Step by Step Solution
3.49 Rating (152 Votes )
There are 3 Steps involved in it
Step: 1
If someone wants to take higher risk investing in business will be the best option The return will b...See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started