Present value and future value computations. Part (a) Compute the amount that a $20,000 investment today would accumulate at 10% (compound interest) by the end of 6 years. Part (b) Bud Fox wants to retire at the end of this year (2017). His life expectancy is 20 years from his retirement. Bud has come to you, his CPA, to learn how much he should deposit on December 31, 2017 to be able to withdraw $40,000 at the end of each year for the next 20 years, assuming the amount on deposit will earn 8% interest annually. Part (c) Halle Berry has a $1, 200 overdue debt for medical books and supplies at Ira's Bookstore. She has only $400 in her checking account and doesn't want anyone to know about this debt. Ira tells her that she may settle the account in one of three ways since she can't pay it all now: 1. Pay $400 now and $1,000 when she completes her residency, two years from today 2. Pay $1, 600 one year after completion of residency, three years from today 3. Marry Ira and he will erase the debt completely. Assuming that the cost of money is the only factor in Halle's decision and that the cost of money to her is 8%: also assume Ira's accountant will not accept alternative #3, which alternative (#1 or #2 ONLY) should she choose? Your answer must be supported with calculations