For your twenty-first birthday, your grandfather offers you a gift of ($1),000 today. However, you have the

Question:

For your twenty-first birthday, your grandfather offers you a gift of $$1$,000 today. However, you have the choice of waiting 3 years and receiving $$1$,500 or waiting 5 years and receiving $$3$,000. If your money grows at a rate of 8 percent compounded annually, which alternative should you choose?

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