Question: Problem 7-15 You are offered $900 after five years (Offer 1) or $150 a year for five years Offer 2). If you can earn 5

Problem 7-15 You are offered $900 after five years (Offer 1) or $150 a year for five years Offer 2). If you can earn 5 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? Offer 1 g If you can earn 16 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): $ X FV(Offer 2): $ Which offer will you accept, if you can earn 16 percent on your funds? Offer 2 Why are your answers different? The choices are different as the higher interest rate favors early payments Hide Feedback Partially Correct

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