Problem $7-15$

$7.$

You are offered $$1,100$ after six years $($Offer $1)$ or $$150$ a year for six years $($Offer $2).$ If you can earn $7$ percent on your funds, calculate the future values of both payments. Use Appendix $C$ to answer the question. Round your answers to the nearest dollar.

FV$($Offer $1)$: $

FV$($Offer $2)$: $

Which offer will you accept?

If you can earn $18$ percent on your funds, calculate the future values of both payments. Use Appendix $C$ to answer the question. Round your answers to the nearest dollar.

$F{V}_{(Offer1)}$:$

$F{V}_{(Offer2)\text{:}}$$

Which offer will you accept, if you can earn $18$ percent on your funds?

Why are your answers different?

The choices are different as the higher interest rat $$