1. You inherit $50,000 and are offered one of two possible investment opportunities for a period of 10 years: a. 12% compounded quarterly b. 9.75% compounded monthly -/63/00 F-32,037,IL CHOOSE (a) Which one should you choose? Draw cash flow diagrams for both options. 2. You borrow $1,000 and pay off the amount, with interest, after 4.5 years. The total single amount paid 4.5 years later is $1,500. The payment period is 6 months. What are the nominal and effective annual interest rates for this transaction? 44 28 %.Yn 3. The U.S. Department of Energy is developing a laser project that simulates a thermonuclear reaction. The estimated development cost was $2.7 billion 8 years ago. The project is now ready to start. What is the expected cost today. The Energy Department is using 18% as a project interest rate