Your father offers you a choice of $105,000 in 12 years or $47,000 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 $105,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value

$

a-2.

Which offer should you choose?

	$105,000 in 12 years
	$47,000 today

b-1.	Now assume the offer is $105,000 in 9 years or $47,000 today. What is the present value of the $105,000 at 8 percent for 9 years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value

$

b-2.

Now, which offer should you choose?

	$47,000 today
	$105,000 in 9 years