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Your grandmother has told you she can either give you $4,800 now or $5,500 when you graduate from college in three years. Your savings account

Your grandmother has told you she can either give you $4,800 now or $5,500 when you graduate from college in three years. Your savings account earns 4% interest, compounded annually. Which option would be worth more to you now, and how much more? (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Round your final answer to 2 decimal places.)

a. The $5,500 in the future is worth $89.50 more than the $4,800 now.

b. The $4,800 now is worth $89.50 more than the $5,500 in the future.

c. The $5,500 in the future is worth $100.00 more than the $4,800 now.

d. The $4,800 now is worth $100.00 more than the $5,500 in the future.

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