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

Your father offers you a choice of $$140,000$ in $10$ years or $$47,000$ 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 $11$ percent, what is the present value of the $$140,000?$

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

a$-2.$Which offer should you choose?

multiple choice $1$

$$47,000$ today

$$140,000$ in $10$ years

b$-1.$ Now assume the offer is $$140,000$ in $7$ years or $$47,000$ today. What is the present value of the $$140,000$ at $11$ percent for $7$ years?

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

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

multiple choice $2$

$$140,000$ in $7$ years

$$47,000$ today