Student computes present and future values
1.
	a.	You deposit $100 into an account earning a 10% annual rate of interest. How much money will you have in the account at the end of five years? (30 points)
	b.	You have just won the lottery and have a choice of receiving a lump sum of $1,000,000 or an annuity of $100,000 per year for 15 years. If the appropriate discount rate is 8%, which alternative would you choose? (10 points) Explain. (30 points)
	c.	What happens to the future value of a sum of money deposited for N years as the rate of return k increases? (15 points) What happens to the present value of a sum of money to be received at the end of N years as k increases? (15 points)