Question: 1. A single dollar will eventually become a huge sum. If this money is invested in small-cap stocks (a risky class of investments) that earn

1. A single dollar will eventually become a huge sum. If this money is invested in small-cap stocks (a risky class of investments) that earn an average of 17% annually, how much will you accumulate in 10, 100, and 1000 years?

2. A common mistake is to wait to invest for retirement. We will assume that we are investing in large-cap stocks (a somewhat risky class of investments) which earn an average of 13% annually. Suppose you invest $1 per day starting today, how much will you have after 20, 30, and 40 years?

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