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Your grandfather has offered you a choice of one of the three following alternatives:

Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer u

Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.


a-1. Assuming you could earn 6 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)


1250 ->    Present value = _________
  

a-2. If you could earn 7 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
  


1250 -> Present value = __________

Please show how to solve without excel and without financial calculator 


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