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Difference in future value

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You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 10 years from today?

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Solution Summary

The solution explains the difference in future value if an amount if deposited now or after ten years.

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We have to find the future value under the two situations.
Situation 1 - we deposit $10,000 today. This is a lump sum and the ...

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