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You have the choice of receiving $120,000 now or $58,000 now and another $84,000 five years from now. In terms oftoday's dollar, which choice is

You have the choice of receiving $120,000 now or $58,000 now and another $84,000 five years from now. In terms oftoday's dollar, which choice is better and by howmuch? Money is worth 6.5% compounded annually.

Which choice isbetter?

The choice of $58,000nowand$84,000infiveyears is better.

They are equal in value.

The choice of $120,000now is better.

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