Your father offers you a choice of $115,000 in 12 years or $46,500 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 12 percent, what is the present value of the $115,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

a-2. Which offer should you choose? $115,000 in 12 years $46,500 today

b-1. Now assume the offer is $115,000 in 9 years or $46,500 today. What is the present value of the $115,000 at 12 percent for 9 years? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

b-2. Now, which offer should you choose? $46,500 today or $115,000 in 9 years