Judy Thomas has a $2,100 overdue debt for medical books and supplies at Joe's Bookstore. She has only $600 in her checking account and doesn't want her parents to know about this debt. Joe's tells her that she may settle the account in one of two ways since she can't pay it all now:

1.	Pay $600 now and $1,390 when she completes her residency, 2 years from today.
2.	Pay $2,900 one year after completion of residency, 3 years from today.