2. a. If the interest rate is 3%, what is the present value of: i) $1 nine years from now? ii) a portfolio of $80 paid five years from now as well as $50 eight years from now? iii) $40 paid each year for eight years beginning next year? iv) S1600 paid each year, beginning next year, forever? b. Zaggy Zargawhoop wants to buy a yacht. To purchase the yacht, the yacht dealer allows Zaggy to pay a fixed amount each year for 20 years. According to Zaggy's accountant, the maximum payment Zaggy can afford each year is $5 million, and payments begin next year. If the interest rate is 4%, what is the maximum price of a yacht Zaggy can purchase? c. Now Zaggy found a yacht to purchase, named All Else Equal, with a price of $56 million. The interest rate is still 4%. What will be Zaggy's payment per year if the loan has a 20 year term