Your grandfather has offered you a choice of one of the three following alternatives, $7,500 now, 42,200 a year for nine years, or $31,000 at the end of nine 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 percent value of each alternative . (Do not round intermediate calculations. Round your final answers to 2 decimal places).

Percent Value

$ 7,500 $...........................

$ 2,200 $..........................

$ 31,000 $........................

a2 What alternative should you choose

i. $31,000 received at end of nine years

ii.$2,200 received each year for nine years

iii $ 7,500 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 answer to two decimal places.

Present Value

$7,500 $................

$2,200 $..............

$31,000 $................

b-2 Which alternative would you choose

i. $31,000 received at the end of nine years

ii $2,200 received each year for nine years

iii.$7,500 received now