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Your poor uncle likes to gamble. He borrowed money from a bookmaker and now has a debt he may repay by paying $5,000 NOW, or

Your poor uncle likes to gamble. He borrowed money from a

bookmaker and now has a debt he may repay by paying $5,000

NOW, or $10,000 in five years time.

If the interest rate is 14% APR compounded monthly, would you

advise him to pay the debt NOW or IN FIVE YEARS?

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