Question 1: What is the discounted value of payments of $58.00 made at the end of each year for 9 years if interest is 11% compounded annually? Part 1 The discounted value is $

Question 2: You have the choice of receiving $110,000 now, or $58,000 now and another $77,000 seven years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 5.4% compounded annually.

Which choice is better?

A.The choice of $58,000 now and $77,000 in seven years is better.

B.They are equal in value.

C.The choice of $110,000 now is better.

Part 2

The better choice is greater than the alternative choice by . in terms of today's dollar.