# Finance - Accounting

Can somebody people check this out and let me know if I did it right? Your uncle offers you a choice of \$30,000 in 50 years or \$95 today. If money is discounted at 12 percent, which should you choose? You should take the \$95.
Option #1: Using appendix b
PV =FV [1/ (1+i) ^n]
PV=FV [1/ (1+i) ^50] (n= 50, i=12%)
PV=\$30,000[1/.003]
PV=\$30,000 x .003= \$90

Option #2
PV= \$95
I came to this conclusion by using appendix b. So I would take the \$95 now over the \$30,000 in 50 years because in today money the \$30,000 would only be worth \$90 in the future. And who knows, in 50 years I may not be alive to enjoy the money.

1. 👍 0
2. 👎 0
3. 👁 95

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