1. You have the choice of receiving $80,000 now or $33,000 now and another $56,000 four years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 4.8% compounded annually.

Which choice is better?

A. The choice of $80,000 now is better.

B. They are equal in value.

C. The choice of $33,000 now and $56,000 in four years is better.

2. Jane is purchasing a membership in a fitness centre. She can pay either $300 now or pay $190 now, $110 in nine months, and $80 in fourteen months. Which option is better if money is worth 7.7% compounded monthly?

Which choice is better?

A. They are equal in value.

B. The choice of $300 now is better.

C. The choice of $190 now, $110 in 9 months and $80 in 14 months is better.