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10.Grandpa just gave you $1,000. You will use it to buy a Gucci handbag in the next 4years. If you put it in the bank,

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10.Grandpa just gave you $1,000. You will use it to buy a Gucci handbag in the next 4years. If you put it in the bank, you will get 7% compounded annually. If you lend it to your friend, you will get an 8% simple interest rate annually. How much are the returns from both alternatives? what alternative will you choose

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