You are offered $900 after four years (Offer 1) or $200 a year for four years (Offer

2). If you can earn 7 percent on your funds, calculate the future values of both payments. Use Appendix C to answer the question. Round your answers to the nearest dollar. FV(Offer

1): $ FV(Offer

2): $ Which offer will you accept? If you can earn 18 percent on your funds, calculate the future values of both payments. Use Appendix C to answer the question. Round your answers to the nearest dollar.

FV(Offer 1):

$ FV(Offer 2):

$ Which offer will you accept, if you can earn 18 percent on your funds?

Why are your answers different? The choices are different as the higher interest rate .