Your colleague is excited about your good fortune (Problem 3.1) at work, but she only got the promise of a watch or \($300\) cash. You convince her that she will be better in the long run by just taking the money and trying to nd an account earning 12% per year to invest her money.
How much will she have accumulated in this account after 25 years? What if she waits 40 years?

Data from problem 3.1

You just received an unexpected bonus at work of \($10,000.\) While you plan on using a bit of it to celebrate by purchasing all the accounting books you ever dreamed of, how much should you deposit in an account earning 6% per year if you'd like to have \($10,000\) in the account in 10 years?