You have a savings account that earns 5% interest, compounded annually. A friend has offered you an investment opportunity; he says that if you invest in his new business, he will pay you $10,000 a year for the next five years. What is the maximum amount you would be willing to invest in your friend's business?

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The Answer of You have a savings account that earns 5% interest, compounded annually. A friend has offered you an investment opportunity; he says that if you invest in his new business, he will pay you $10,000 a year for the next five years. What is the maximum amount you would be willing to invest in your friend's business?

You Have a Savings Account That Earns 5% Interest, Compounded