Homework Assignment
Cost-Volume-Profit Elements and Relationships
Your best friend just received a gift of $7,000 from his favorite aunt. He wants to save the money to use as “starter” money after college. He can invest it (1) risk-free at 6%, (2) taking on moderate risk at 8%, or (3) taking on high risk at 14%.
Help your friend project the investment’s worth at the end of four years under each investment strategy and explain the results to him.
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