A person is to be paid $2000 for work done over a year. Three payment options are being considered. Option 1 is to pay the $2000 in full now. Option 2 is to pay $1000 now and $1000 in a year. Option 3 is to pay the full $2000 in a year. Assume an annual interest rate of 5% a year, compounded continuously.

(a) Without doing any calculations, which option is the best option financially for the worker? Explain. 

(b) Find the future value, in one year’s time, of all three options. 

(c) Find the present value of all three options.