Which option would be worth more to you now
Your grandmother has told you she can either give you $4,000 now or $5,000 when you graduate from college in three years. Your savings account earns 7% interest, compounded annually. Which option would be worth more to you now, and how much more?
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Your grandmother has told you she can either give you $4,000 now or $5,000 when you graduate from college in three years. Your savings account earns 7% interest, compounded annually.
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