A financial company that advertises on television will pay you $$56,000$ now for annual payments of $$10,000$ that you are expected to

receive for a legal settlement over the next $9$ years. Use Exhibit $1-$D$.$

a$.$ What is the present value of the annual payments if you estimate the time value of money at $10$ percent? $($Round your PVA factor to

$3$ decimal places and final answer to the nearest whole dollar.$)$

Present value

b$.$ Should you accept this offer?

Yes

No