You can choose to take $120,000 in 10 years or $45,000 today. At an interest rate of 12 percent, what is the value of$120,000 now? (Enter your answer as a positive number rounded to 2 decimal places.)

a-2. Which option should be selected?

multiple choice 1

• $120,000 in 10 years
• $45,000 today

b-1. Assume an interest rate of12 percent for 7 years.If the choice is $120,000 in 7 years or $45,000 today, how much is the $120,000 worth today? (Enter your answer as a positive number rounded to 2 decimal places.)