Please help me study for my test by helping me learn this problem. Thanks.

Ariel's grandmother has promised to give her $5,000 when she graduates from college. She is expecting Ariel to graduate two years from now. What happens to the present value of this gift if Ariel delays her graduation by one year and graduates three years from now?

Question 1 options:

a)increases

b)remains constant

c)cannot be determined from the information provided

d)becomes negative

e)decreases