You are offered ​$100 comma 000 today or ​$310 comma 000 in 14 years. Assuming that you can earn 7​% on your​ money, which should you​ choose?  
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Part 1
Click the table icon to view the PVIF​ table: LOADING....
The present value of the ​$310 comma 000 in 14 years is ​$
  
enter your response here.  ​(Round to the nearest​ cent.)
Part 2
Which should you​ choose?  ​(Select the best choice​ below.)
A.
You should take the $ 100 comma 000 today because it has a higher present value today.
B.
You should take the $ 310 comma 000 in 14 years because it has a higher present value today.
C.
It does not matter which one you take because they are equal in value.

We can solve this problem by calculating the present value (PV) of the $310,000 to be received in 14 years, using the formula for present value:

\[
PV = \frac{FV}{(1 + r)^n}
\]

Where:
- $FV = 310,000$ (future value)
- $r = 7\%$ or 0.07 (interest rate)
- $n = 14$ years

### Part 1: Calculate the Present Value
Let's calculate the present value of $310,000 using the formula.

\[
PV = \frac{310,000}{(1 + 0.07)^{14}}
\]

We will now compute this value.

The present value of receiving $310,000 in 14 years at a 7% interest rate is approximately \$120,223.34.

### Part 2: Which should you choose?

Since the present value of $310,000 in 14 years (\$120,223.34) is higher than the $100,000 offered today, you should choose the $310,000 in 14 years.

**Correct Answer:**
B. You should take the $310,000 in 14 years because it has a higher present value today.

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Would you like further details or have any questions? Here are five related questions to deepen your understanding:

1. How does the interest rate affect the present value?
2. What happens if the interest rate increases to 10%?
3. How would the calculation change if the future value was $500,000 instead?
4. What if the time frame was only 10 years instead of 14?
5. Can we use a different formula to assess future value?

**Tip:** When making decisions on future payments, always compare the present value of each option to determine which is more valuable today.

You are offered ​$100,000 today or ​$310,000 in 14 years. Assuming that you can earn 7% on your money, which should you choose? The present value of the ​$310,000 in 14 years is? (Round to the nearest cent.) Which should you choose? (Select the best choice below.) A. You should take the $100,000 today because it has a higher present value today. B. You should take the $310,000 in 14 years because it has a higher present value today. C. It does not matter which one you take because they are equal in value.

Calculate the present value of $310,000 to be received in 14 years at a 7% interest rate, and decide whether to choose $100,000 today or wait for the larger sum. This problem covers key concepts in present value calculation and the time value of money, suitable for college-level finance or business math students.

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