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    Future Value of sums of money over eight years

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    Your rich godfather has offered you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight yeaers; or $24,000 at the end of eight years. assuming you could earn 11 percent annually, which alterantive should you coose? If you could earn 12 percent annually, would you still choose the same alterantive.

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    Solution Summary

    The future value of sums of money over eight years is computed.

    $2.19