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HELP ASAP (Present-value comparison) Much to your surprise, you were selected to appear on the TV show The Price is Right. As a result of
HELP ASAP
(Present-value comparison) Much to your surprise, you were selected to appear on the TV show "The Price is Right." As a result of your prowess in identifying how many rolls of toilet paper a typical American family keeps on hand, you win the opportunity to choose one of the following: $1,900 today, $11,000 in 14 years, or $26,000 in 26 years. Assuming that you can earn 9 percent on your money, which should you choose? If you are offered $11,000 in 14 years and you can earn 9 percent on your money, what is the present value of $11,000 ? \$ (Round to the nearest cent) Step by Step Solution
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