Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. assuming a constant interest rate of 7%, consider the present and future values of this gift, depending on when you become engaged.

year start principal start balance interest end balance end principal 1 $1,000.00 $1,000.00 $70.37 $1,082.38 $1,012.00 2 $1,012.00 $1,082.38 $76.14 $1,170.53 $1,024.00 3 $1,024.00 $1,170.53 $82.32 $1,264.84 $1,036.00 4 $1,036.00 $1,264.84 $88.91 $1,365.76 $1,048.00 5 $1,048.00 $1,365.76 $95.97 $1,473.75 $1,060.00 6 $1,060.00 $1,473.75 $103.54 $1,589.29 $1,072.00 7 $1,072.00 $1,589.29 $111.65 $1,712.92 $1,084.00 8 $1,084.00 $1,712.92 $120.30 $1,845.21 $1,096.00 9 $1,096.00 $1,845.21 $129.54 $1,986.75 $1,108.00 10 $1,108.00 $1,986.75 $139.44 $2,138.20 $1,120.00

They are enjoying the advantage of independence while running their own small business. they can go where they want when they want to, because they control the restaurant's hours. they can also make time for life emergencies, and set the hours to be when they do the best cooking.