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A friend wants to work for 2 years then return to school fulltime for a masterAc€?cs degree. OPT

A friend wants to work for 2 years then return to school fulltime for a masterAc€?cs degree. OPT

A friend wants to work for 2 years then return to school fulltime for a masterAc€?cs degree. OPTION A: He can invest $1,000/month ina mutual fund that earns 6% annually, for 2 years. But he isthinking of waiting five years, and investing only $500/month forthe whole five years (he wants to enjoy life – OPTION B), earningthe same 6% per year. He feels that by investing twice as much for2 years instead of 5 years he might have less to live on for thetwo years of full time school, but will finish his degree threeyears earlier.A. How much will he have saved under Option A?B. How much will he have saved under Option B?C. When he starts his masters, under Option A, how much can hewithdraw per month, for 2 years (assume he continues to earn6%)?D. How much can he withdraw per month, for 2 years, under OptionB, (assume he continues to earn 6%)?E. Which option would you choose, and why?