Which offer should you choose?

(Present-value comparison) Much to your surprise, you were selected to appear on the TV show "The Price is Right." As a result of your prowess in identifying how many rolls of toilet paper a typical American family keeps on hand, you win the opportunity to choose one of the following: $2,000 today, $11,000 in 9 years, or $28,000 in 22 years. Assuming that you can earn 6 percent on your money, which should you choose? If you are offered $11,000 in 9 years and you can earn 6 percent on your money, what is the present value of $11,000 ? $ (Round to the nearest cent.) (Related to Checkpoint 5.6) (Solving for i ) Kirk Van Houten, who has been married for 21 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be $12,500 in 9 years. Kirk currently has $4,554 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring? The annual rate of return Kirk must earn on his investment to accumulate enough money to pay for the ring is %. (Round to two decimal places.)