In Dingdons 20-year-old birthday, Grandpa is going to give him some money as a present. He can invest his money safely at 4% per year. Would he rather have? a. $5,000 cash today b. $6,300 in 3 years c. $23,300 in 20 years d.$1,000 today plus $8500 in 10 year e. $232,500 in 50 years a. PV=5000; b. PV=5600; c.PV=10634; d. PV=6742; e. PV=32716. e is the choice although it may not be realistic.

Show why the answer is E on a financial calculator BA II Plus Texas Instrument