Your brother has offered to give you either $ 15000

$15,000 today or $ 30 comma 000

$30,000 in 15

15 years. If the interest rate is 5 %

5% peryear, which option ispreferable?

What is the present value of the future amount(amount received in 15

15 years)?

The present value is $

nothing

. (Round to the nearestdollar.)

Which option ispreferable? (Select the best choicebelow.)

A.

Take the present amount offered because it is less than the future amount.

B.

Take the future amount because its present value is greated than the present amount offered.

Takethefutureamountbecauseitspresentvalueisgreatedthanthepresentamountoffered.

C.

Take the present amount offered because it is greater than the present value of the future amount.

Takethepresentamountofferedbecauseitisgreaterthanthepresentvalueofthefutureamount.

D.

Take the future amount because the larger amount is always worth more no matter when you receive it.