You are offered $90, 000 today or $300, 000 in 14 years. Assuming that you can earn 11 percent on
your money, which should you choose?
If you are offered $300, 000 in 14 years and you can earn 11 percent on your money, what is the
present value of $300, 000 ?
(Round to the nearest cent.)
Which offer should you choose?
A . Choose $90, 000 today because its present value is higher.
B . Choose $300, 000 in 14 years because its present value is higher.