Question: a) What would be more valuable, receiving $500 today or receiving $675 in five years if interest rates are 7 percent? b) How many years

a) What would be more valuable, receiving $500 today or receiving $675 in five years if interest rates are 7 percent?

b) How many years will it take $2 million to grow to $5.60 million with an annual interest rate of 7 percent?

c) At age 28 you invest $1,500 that earns 8 percent each year. At age 43 you invest $1,500 that earns 11 percent per year.

In which case would you have more money at age 65?

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