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. UseAppendix BandAppendix Dfor 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.)

	Present Value
$9,500	$
$4,000	$
$51,000	$

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.)

	Present Value
$9,500	$
$4,000	$
$51,000	$

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