Problem 11-124 (Algo) (LO 11-S1) An acquaintance of yours owes you $1,500, but only has $1,050 to pay you now. He says he can either give you the $1,050 now in full settlement of the debt, or he can give you $1,500 one year from now. If you would let him keep the money for two years, though, he would give you $1,600 at that point. You have a savings account that earns 13% interest. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor from the PV tables.) a. What is the present value of the payment now? Present Value b. What is the present value of the payment a year from now? (Round your answer to 2 decimal places.) Present Value c. What is the present value of the payment two years from now? (Round your answer to 2 decimal places.) Present Value 1. Which option would be best for you financially? The $1,500 payment a year from now The $1,050 payment to pay now The $1,600 payment two years from now