Your father offers you a choice of $110,000 in 11 years or $46,000 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 11 percent, what is the present value of the $110,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

a-2. Which offer should you choose?

	$110,000 in 11 years
	$46,000 today

b-1. Now assume the offer is $110,000 in 8 years or $46,000 today. What is the present value of the $110,000 at 11 percent for 8 years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

b-2. Now, which offer should you choose?

	$110,000 in 8 years
	$46,000 today