Time value. You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be 40 years from now if you decide to make the initial deposit today rather than 10 years from today? Solution Initial deposit Annual interest rate Number of years, scenario 1 Number of years, scenario 2 Future value, scenario 1 Future value, scenario 2 Difference $ 10,000 9.0% 40 30

Time value. You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be 40 years from now if you decide to make the initial deposit today rather than 10 years from today