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Show the calculations,,1. You are winner of a Mega Million Lottery. Your financial advisor believes the interest/discount rates would be at 6% APR for a while. You are given few different payout options. Which one would you prefer. (Show the calculation),a) $750,000 now,b) $10,000 today, then annual payment increasing at 4% a year for 10 more years.,c) $7,500 today, then annual payment increasing 3% a year forever.,d) $50,000 per year for the next 20 years, starting today.,e) $45,000 annual payment forever starting today.,f) $500,000 now and another $500,000 after 10 years.,,2. Ken would like to save $200,000 for his just born son’s education. The bank offer of 8% APR. How much money Ken needs to put aside every year starting today, so that he can make 4 payments of $50,000 each starting when his son turns 18. ,,3. Bill has invested in a 10 year bond which would pay him $1,000 semiannually staring 6 months from today. What is the market value of the investment if the current yield is 8% APR.,,4. William is considering investing one million in a residential property for 15 years. Its value is expected to appreciate 5% every year. In addition to that it would generate net rental revenue of $75,000 per year. If the current discount rate is 6% APR then is this investment valuable or not?,,,,

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