A financial company that advertises on television will pay you $61,000 now for annual payments of $9,000 that you are expected to receive for a legal settlement over the next 10 years. Use Exhibit 1-D.

a. What is the present value of the annual payments if you estimate the time value of money at 8 percent? (Round your PVA factor to 3 decimal places and final answer to the nearest whole dollar.)

_____

b. Should you accept this offer?

• No

• Yes