2. Choosing between payment options (2 points) Jess is buying Yamaha's newest ATV and she is deciding between two payment options: i. Pay the full price $10,999.00 now Pay monthly payments of $350 for 60 months at the end of each month ii. Jess can afford to choose either option but she wishes to choose one that is financially wise. Jess is currently investing all her savings in a mutual fund that pays 2.6% per month Which option should Jess choose? (Instructions: If you are to use a financial calculator for any TVM calculation, provide the financial calculator inputs and clearly indicate your final answer, if you are to use a formula, illustrate your calculation with the formula and provide your final answer. Round all your calculation results to the nearest $1 or 0.1%. 3. Claiming rewards (2 points) Jess just won the $800 million jackpot with "Mega Millions". LotteryUSA asked Jess to choose how to claim her prize. There are two options available: Cash option Jess gets a before-tax lump sum of $528 million now. She will need to pay 40% tax when receive the amount. Annuity option Jess gets before-tax annual payments of $40 million every year for 20 years. She will need to pay 40% tax each time when she receives the amount. Which option should Jess choose if she can earn 4.65% annual rate of return on any investment that she makes? Show your calculation supporting the choice. (Instructions: If you are to use a financial calculator for any TVM calculation, provide the financial calculator inputs and clearly indicate your final answer: if you are to use a formula, illustrate your calculation with the formula and provide your final answer. Round all your calculation results to the nearest $1 or 0.1%.)