Earn on investment for option

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Your Grandfather has just given you $5000. After careful consideration you have decided you want to set the money aside and wait until you graduate then take a vacation to celebrate your accomplishment. You have narrowed your dream trip choices down to 2 options. Option A will cost you $7000 and option B will cost $5500. If you figure you'll graduate in 2 years, what interest rate will you need to earn on your investment for each option? What if you have only 1 year until graduation, or if you have 3 years until graduation. What if you have a $500 financial obligation that is due and you only have $4500 to invest, how will this change things? Discuss your results.

Reference no: EM132044090

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