Your aunt offers you a choice of $22,900 in 50 years or $500 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a-1.	If money is discounted at 8 percent, what is the present value of the $22,900? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value

$

a-2.

Which offer should you choose?

	$22,900 in 50 years
	$500 today