1. Your uncle died last year and left you money in his will. You are to receive $200,000 in three years (time 3) and $2,000,000 ten years from today (i.e., in time 10). (a) What is the value of the inheritance today (in time 0) if the appropriate discount rate is 6% (compounded annually)? (b) If you invest the money when you receive it, how much will it grow to 30 years from today (i.e., in time 30) if you earn 6% compounded annually? 2. Your neighbor is buying a new Tesla electric car. He has the following options to finance the purchase: I. Pays $20,000 today (in time 0) and $50,000 in two years (time 2) II. Make payments under an increasing schedule as follows: Time 0 $8,000 Time 1 $10,000 Time 2 $12,000 Time 3 $14,000 Time 4 $16,000 Time 5 $18,000 III. Make 72 monthly payments over 6 years of $1,100 payable at the end of each month. (a) If the annual interest rate is 7%, calculate the present value of each option. (b) At what interest rate do Option II and Option III have the same present value