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1.7. Julia Gonzlez, a 25-year-old loan officer, understands the importance of starting early to save for her retirement and plans to retire at age 65.
1.7. Julia Gonzlez, a 25-year-old loan officer, understands the importance of starting early to save for her retirement and plans to retire at age 65. In order to guarantee a peaceful old age financially, she is considering two alternatives:
a) Place $3,000 annually in an investment fund that pays an 8% annual return.
b) Place $10,000 one time in an investment fund that pays an 11% annual return.
Which of the two alternatives is the one that would best guarantee what Julia wishes to achieve?
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