Your friend Amber has approached you seeking advice concerning two investment opportunities that she is presently considering. Her classmate Simone has asked her for a loan of $500 to help establish a small business; her neighbor Riley would like to borrow $515 as a personal loan. One year from now, Amber's original investment will be returned in either case, along with $45 of income from Simone or $48 of income from Riley. Amber can make only one investment. Required: a. 1. Compute the ROI of Simone and Riley. 2. Which investment would you advise Amber to make? b. What other factors should you advise Amber to consider before making either investment?

Your friend Amber has approached you seeking advice concerning two investment opportunities that she is presently considering. Her classmate Simone has asked her for a loan of $500 to help establish a small business; her neighbor Riley would like to borrow $515 as a personal loan. One year from now, Amber's original investment will be returned in either case, along with $45 of income from Simone or $48 of income from Riley. Amber can make only one investment. Required: a. 1. Compute the ROI of Simone and Riley. 2. Which investment would you advise Amber to make? b. What other factors should you advise Amber to consider before making either investment?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter13: Investment Fundamentals

Section: Chapter Questions

Problem 4FPC

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