Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios? (you get to? choose):

1.	$7,250 a year at the end of each of the next sevenseven years
2.	$48,750 ?(lump sum) now
3.	$100,250 ?(lump sum) sevenseven years from now

Calculate the present value of each scenario using a 6%interest rate. Which scenario yields the highest present? value? Would your preference change if you used a 12?%interest? rate?

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