(Related to Checkpoint 5.4) (Present-value comparison) You are offered $100,000 today or $400,000 in 12 years. Assuming that you can earn 12 percent on your money, which should you choose? If you are offered $400,000 in 12 years and you can earn 12 percent on your money, what is the present value of $400,000? $ (Round to the nearest cent.) Which offer should you choose? (Select the best choice below.) O A. Choose $100,000 today because its present value is higher. O B. Choose $400,000 in 12 years because its present value is higher. (Solving for i) A financial planner just offered you a new investment product that would require an initial investment on your part of $30,000, and would be worth $260,000 29 years from now. What annual rate of interest would you earn if you invested in this product? The annual rate of interest you would earn if you invested in this product is 1%. (Round to two decimal places.)