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12. (Present-value comparison) Much to your surprise, you were selected to appear on the TV show The Price is Right. As a result of your
12. (Present-value comparison) Much to your surprise, you were selected to appear on the TV show "The Price is Right." As a result of your prowess in identifying how many rolls of toilet paper a typical American family keeps on hand, you win the opportunity to choose one of the following: $1,800 today, 57,000 in 15 years, or $25,000 in 20 years. Assuming that you can earn 7 percent on your money, which should you choose? If you are offered $7,000 in 15 years and you can earn 7 percent on your money, what is the present value of $7,000? $ (Round to the nearest cent) If you are offered $25,000 in 20 years and you can earn 7 percent on your money, what is the present value of $25,000? $ (Round to the nearest cent.) Which offer should you choose? (Select the best choice below.) O A. Choose $25,000.00 in 20 years because its present value is the highest O B. Choose $7,000.00 in 15 years because its present value is the highest. O C. Choose $1,800.00 today because its present value is the highest
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