1.

value: 10.00 points

Your aunt offers you a choice of $21,300 in 30 years or $560 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 13 percent, what is the present value of the $21,300? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value

$

a-2.

Which offer should you choose?

	$560 today
	$21,300 in 30 years'