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Question: Assume that your aunt recently gifted you $12,000. You are both excited and worried about what to do with the money. You evaluated your options and came up with five possible uses:
pay off credit card debt,set aside money for a major investment, such as a car or house,invest the money in a retirement account,use the money for career training/education, ordonate funds to a charitable organization that serves the needy within the community.
Which option would you choose? Go through each option and explain how the time value of money concept affects each option. How does the time value of money concept play a part in your final decision about the use of the $12,000 gift? Explain.
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