How to solve

Consider the following alternatives:

i$.$ $$100$ received in one year

ii$.$ $$210$ received in $5$ years

iii. $$350$ received in $10$ years

a$.$ Rank the alternatives from most valuable to least valuable if the interest rate is $9\%$ per year.

b$.$ What is your ranking if the interest rate is only $4\%$ per year?

c$.$ What is your ranking if the interest rate is $13\%$ per year?

a$.$ Rank the alternatives from most valuable to least valuable if the interest rate is $9\%$ per year.

First, calculate the present value $($PV$)$ of each alternative:

The PV of $$100$ received in one year if the interest rate is $9\%$ per year is $$91\mathrm{.}74.($Round to the nearest cent.$)$

The PV of $$210$ received in $5$ years if the interest rate is $9\%$ per year is $$136\mathrm{.}49.($Round to the nearest cent.$)$

The PV of $$350$ received in $10$ years if the interest rate is $9\%$ per year is $ $$

$($Round to the nearest cent.$)$