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# Value of the bonus in ten years

You have received a \$10,000 bonus which you would like to invest for your child's education. Calculate the value of the bonus in ten years if invested in each of the following:

Option 1: A money market fund that has a current interest rate of 1.75%.
Option 2: U.S. Series I bonds (use the current interest rate for I bonds)
Option 3: A balanced mutual fund that has historically grown by 5% per year
Option 4: A growth mutual fund that has historically grown by 7% per year.
Show your result for each option. Then select the investment that is best suited to your goal and risk tolerance. Explain the advantages and disadvantages of each option.

#### Solution Preview

You have received a \$10,000 bonus which you would like to invest for your child's education. Calculate the value of the bonus in ten years if invested in each of the following:

Option 1: A money ...

#### Solution Summary

This explains the value of the bonus in ten years

\$2.19