Your grandfather has offered you a choice of one of the three following alternatives: $14,500 now; $7,500 a year for five years; or $101,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a-1. Assuming you could earn 9 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

a-2. Which alternative should you choose?

multiple choice $101,000 received at end of five years

$7,500 received each year for five years

$14,500 received now

b-1. If you could earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

b-2. Which alternative should you choose?

multiple choice

$101,000 received at end of five years

$7,500 received each year for five years

$14,500 received now