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Your grandmother has told you she can either give you $4,200 now or $5,400 when you graduate from college in three years. Your savings account

Your grandmother has told you she can either give you $4,200 now or $5,400 when you graduate from college in three years. Your savings account earns 7% 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.) (Round your PV factor to 4 decimal places and final answer to 2 decimal places.)

A. The $5,400 in the future is worth $200.00 more than the $4,200 now.

B. The $4,200 now is worth $200.00 more than the $5,400 in the future.

C. The $4,200 now is worth $208.02 more than the $5,400 in the future.

D. The $5,400 in the future is worth $208.02 more than the $4,200 now.

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