Problem $9-8($Algo$)$ Present value $[$LO$9-3]$

Your father offers you a cholce of $$115,000$ in $10$ years or $$48,000$ today. Use Appendix $B$ as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a$-1.$ If money is discounted at $10$ per$$ent$,$ what is the present value of the $$115,000?$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

a$-2$ Which offer should you choose?

$$115,000$ in $10$ years

$$48,000$ today

b$-1.$ Now assume the offer is $$115,000$ in $7$ years or $$48,000$ today. What is the present value of the $$115,000$ at $10$ percent for $7$ years? Note: Do not round intermedlate calculations. Round your final answer to $2$ decimal places.

$$

b$-2$ Now, which offer should you choose?

$$115\mathrm{.}000$ in $7$ years

$$48,000$ todayProblem $9-8($Algo$)$ Present value $[$LO$9-3]$

Your father offers you a cholce of $$115,000$ in $10$ years or $$48,000$ today. Use Appendix $B$ as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a$-1.$ If money is discounted at $10$ per$$ent$,$ what is the present value of the $$115,000?$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

a$-2$ Which offer should you choose?

$$115,000$ in $10$ years

$$48,000$ today

b$-1.$ Now assume the offer is $$115,000$ in $7$ years or $$48,000$ today. What is the present value of the $$115,000$ at $10$ percent for $7$ years? Note: Do not round intermedlate calculations. Round your final answer to $2$ decimal places.

$$

b$-2$ Now, which offer should you choose?

$$115\mathrm{.}000$ in $7$ years

$$48,000$ today