Your grandfather has offered you a choice of one of the three following alternatives: $6,500 now; $1,750 a year for seven years; or $27,000 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 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Present Value

$6,500 ____________

$1,750 ___________

$27,000 __________

b-1.	If you could earn 11 percent annually, compute the present value of each alternative

$ present value

$6,500 ____________

$1,750 ___________

$27,000 _________