1. You want to have $2 million to use for retirement in 35 years. AA insurance company is offering a new policy to you. The details of the policy are as follows: the purchaser makes the the insurance company following five payments to S 60000 in year1 S 60000 in year 2 $ 70000 in year 3 $ 70000 in year 4 S 80000 in year 5 You will receive $1 million in 35 years. The relevant interest rate is 10 percent for the first 5 years and S5 percent for all subsequent years. Required: 1). Calculate the present value of five payments. (5 marks) 2). Should you accept this policy? Why? (7 marks) 3). If you are a financial consultant, please help insurance company to design a new policy which allows customers to pay equal payment in the first five year and receive $2 million in 35 years. (8 marks) (20 marks)