Your grandfather has offered you a choice of one of the three following alternatives: $9,000 now; $3,800 a year for six years; or $46,000 at the end of six 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 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

9,000:

3800:

46000:

a-2. Which alternative should you choose?

	$46,000 received at end of six years?
	$3,800 received each year for six years?
	$9,000 received now?

b-1. If 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.)

9000:

3800:

46000:

b-2. Which alternative should you choose?

	$46,000 received at end of six years?
	$3,800 received each year for six years?
	$9,000 received now?