A friend of yours hasn't taken this cCourse and therefore does not appreciate the time-value of money He offers to pay you back for that time he borrowed money and gives you two options: 1. Two equal...

Extracted text: A friend of yours hasn't taken this cCourse and therefore does not appreciate the time-value of money He offers to pay you back for that time he borrowed money and gives you two options: 1. Two equal payments of $1030, today and in 2 years, or 2. One single payment of $2060 (twice the amount) in 1 year. Now, because you appreciate the time-value of money, you realize that, while the two options appear to have equal value, the two-payment option has a greater value. Assuming money can earn 11% compounded quarterly, how much of a difference is there between the values of the two options? Use today as your focal date and ensure your answer is positive. Answer: $277