An acquaintance of yours owes you $2,000, but only has $1,300 to pay you now. He says he can either give you the $1,300 now in full settlement of the debt, or he can give you $2,000 two year from now. If you would let him keep the money for three years, though, he would give you $2,100 at that point. You have a savings account that earns 15% interest. ( Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables.) a. What is the present value of the payment now?

b. What is the present value of the payment two years from now? (Round your answer to 2 decimal places.)

c. What is the present value of the payment three years from now? (Round your answer to 2 decimal places.)

d. Which option would be best for you financially? multiple choice

• The $2,000 payment two years from now

• The $1,300 payment to pay now

• The $2,100 payment three years from now