Redo problem 38 from section 1.7 of your textbook (page 58), but use the following data and minor modifications to the questions:

Assume your business associate owes you $ 12600. Also assume they offer either $ 10970 now or $ 1800 per year for 7 years, starting now. Assume a 6.3 % market interest rate, compounded continuously.

How much would you have at the end of 7 years if you choose to take the $ 10970 offer now, and you use the market to earn interest on the funds? $________

How much would you have at the end of 7 years if you choose to take the installments each year, and you still used the market to earn interest on the the funds? $_______

Is it better to take the lump sum? ______