Question: (Present-value comparison) You are offered $2,000 today, $6,000 in 14 years, or $32,000 in 20 years. Assuming that you can earn 7 percent on your

(Present-value comparison) You are offered $2,000 today, $6,000 in 14 years, or $32,000 in 20 years. Assuming that you can earn 7 percent on your money, which offer should you choose?

a. What is the present value of $32,000 in 20 years discounted at 7 percent interest rate?

$ (Round to the nearest cent.)

b. What is the present value of $6,000 in 14 years discounted at 7 percent interest rate?

$ (Round to the nearest cent.)

c. Which offer should you choose? (Select the best choice below.)

A. Choose $6,000 in 14 years because its present value is the highest.

B. Choose $2,000 today because its present value is the highest.

C. Choose $32,000 in 20 years because its present value is the highest.

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