Present-value comparison Much to your surprise you were selected to appear on the TV show The Price is Right As a result of your prowess in identifying how many rolls of toilet paper a typical American family keeps on hand, you win the opportunity to choose one of the folowwing $1,700 today, $11,000 in 15 years or $ 26,000 in 28 years. Assuming that you can earn 11 percent on your money, which should you choose.
1. Round to nearest cent-
2. If you were offered $26,000 in 28 years and can earn 11 percent on your money what is the present value of $26,000?
Round to nearest cent-
3. Which offer should you choose
a. Choose $1,700.00 today because its present value is the highest
b. Choose $2,600.00 in 28 years because its present value is the highest
c. Choose $11,000.00 in 15 years because its present value is the highest