Imagine you are a columnist who gives advice about personal finance to readers of a local newspaper. The following question has been submitted for you to answer. Write your response to the reader in letter form.

My grandmother has offered me $10,000 today toward college if I promise to save the money in a bank. Otherwise, she will give me $12,167 five years from now when I am entering college. Under what assumptions should I take the $10,000? $12,167?