1. Your brother-in-law needs a loan again. This time he needs to borrow $10,000. He always comes to you because you only charge him 4% interest per year. He promises to pay you $2,000 a year from now, $4,000 in two years and the rest of what he owes you in three years. How much will his third payment be? Suppose at the end of year three he says, well, Ive paid you $6,000, whats left must be $4,000. Explain to him intuitively why thats not, in fact, what he owes you.