1. You are the lucky winner of the $30 million state lottery. You can take your prize money either as (a) 30 payments of $1 million per year (starting today), or (b) $15 million paid today. If the interest rate is 8%, which option should you take? 2. You planned to donate money to endow a chair at your alma mater to supplement the salary of a qualified individual by $100,000 per year. The university has asked you to increase the donation to account for the effect of inflation, which is expected to be 2% per year. How much will you need to donate to satisfy that request if the interest rate is 4% per year? 3. Your biotech firm plans to buy a new DNA sequencer for $500,000. The seller requires that you pay 20% of the purchase price as a down payment and is willing to finance the remainder by offering a 48-month loan with equal monthly payments and an interest rate of 0.5% per month. What is the monthly loan payment