Your grandfather has offered you a choice of one of the three following alternatives: $9,500 now; $4,000 a year for seven years; or $51,000 at the end of seven 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 11 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?

	$51,000 received at end of seven years
	$4,000 received each year for seven years
	$9,500 received now

b-1. If you could earn 12 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?

	$51,000 received at end of seven years
	$4,000 received each year for seven years
	$9,500 received now