Question: (Future value) Nadja from Austria wants to make a single investment and have $100,000 after her graduation in 5 years. She did found a microfinance organization that offered her 15 percent per annum; however, Nadja felt that a microfinance organization may be too risky. On the other hand, she was offered 8 percent per annum by local bank. How much would Nadja have to invest in each case? What is the trade-off between her choices?