A financial company advertises on television that they will pay you $50,000 now in exchange for annual payments of $6,500 that you are expected to receive for a legal settlement over the next 10 years. You estimate the time value of money at 9 percent. (a) Calculate the present value of the annual payments. Use Exhibit 1-D. (Round time value factor to 3 decimal places and final answer to the nearest whole number.) Present value (b) Would you accept this offer? Yes O No

A financial company advertises on television that they wil pay you $50,000 now in exchange for annual payments of $6,500 that you are expected to recelve for a legal settlement over the next 10 vears. You estimate the time value of money at 9 percent: (a) Calculate the present value of the annual payments, Use Exhiblt:1:2. (Round time value factor to 3 decimal places and final answer to the nearest whole number.) (b) Would you accept this offe? Yes No