Your uncle offers you a choice of $109,000 in 10 years or $35,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a-1. If money is discounted at 9 percent, what is the present value of the $109,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value

a-2. Which offer should you choose?

• $109,000 after 10 years

• $35,000 today