A rich uncle set up a trust fund for you! The trust allows you to make a choice:

$($A$)$ receive $$110,000$ today or

$($B$)$ receive $$120,000$ five years from today.

Assume you do not need the money right now and that you can earn $5\%$ compounded annually.

What is the present value of option A and B$?$

What is the future value of option A and B$?$

Assume you can only earn $1\%$ compounded annually. Which option should you select, A or B$?$ Why?