Help Save Submit Seved no 4 Geraldo recently won a lottery and chose to receive $90,000 today instead of an equivalent amount in 10 years, computed using an 8 percent rate of retum. Today, he learned that interest rates are expected to increase in the future. Use Exhibit 31 Is this good news for Geraldo given his decision? 76 Yes NO 58 56 59 ERO SIT 106 stb 928 198 TEL SS 745 999 EXHIBIT 3-1 Present Value of a Single Payment af Various Annual Rates of Return 49 5! 75 105 129 Year 1 962 95 926 917 909 893 (Year 2 925 907 890 873 857 842 812 -797 ar 389 810 316 794 772 .751 -732 Year 4 222 792 763 735 708 683 .659 636 Years 22 784 142 713 681 650 621 593 567 Year 790 705 630 596 564 Year 760 711 665 623 583 547 513 482 452 Wars 731 22 3 SLO 467 434 404 703 665 592 514 500 180 Year 10 424 391 361 670 514 353 508 463 422 386 32 650 475 429 317 2 625 557 497 197 356 319 Year 530 257 415 3 325 Year 14 290 258 229 143 200 Year 13 265 2005 417 315 219 200 1 SES LOS LLE DOS & NEBERG BB lalalalalala Year 11 ESE LZS NE OSE LE 100 385 555 29 273 esc 2018 : # , 2 $ 3 5 Assume Rafael can earn an 6 percent after-tax rate of return, Use Exhibit 3.1. Would he prefer $2,500 today or $3,750 in five years? $2,500 today 4.76 points $3,750 in five years Skipped Print References 03 0 Sve Help Save & El Submit Jonah has the choice of paying Rita 321,000 today or $96.000 in 10 years. Assume Jonah can com a 12 percent after tax rate of return Which should he choose? Use Exhib $24,000 today 596,000 in ton years