Calculate the present value of the following:

a-1. Annual payment of $775 for 10 years at 4% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present Value:

a-2. Annual payment of $575 for 15 years at 4% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present Value:

a-3. Which option would you prefer?

• $775 a year for 10 years

• $575 a year for 15 years

b-1. Annual payment of $775 for 10 years at 16% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present Value:

b-2. Annual payment of $575 for 15 years at 16% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present Value:

b-3. Which option would you prefer?

• $775 a year for 10 years

• $575 a year for 15 years