a) Emma won a $10,000,000 state lottery. She has two (2) options. Option 1 allows her to claim her money as 20 year payments of $2,000,000 each, and option 2 allows her to take $10,000,000 today. If the interest rate is 3%, which option should she take?

b) Jack is 30 years old and has decided to start saving for retirement. To achieve his financial goals, he plans to save $12,000 annually at the end of each year until he reaches age 65. If the account earns 4% per year, how much will he have in the account at age 65?

c) Find the present value and future value of an investment that pays 8% annually and makes the following end-of-year payments.

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

$1,000 $2,000 $4,000 $6,000 $9,000

d) Jane wants to endow an annual exhibition at the art gallery of her alma mater. She allocates $20,000 per year forever to this event. If the university earns 12% per year on its investments, and if the event is in one year's time, how much will she need to donate to endow the exhibition?