2. Suppose you have just signed a professional contract to play cricket in Argentina. The contract is for 4 years and is as follows. You get an immediate signing bonus of $500,000, followed by four years of quarterly payments of $75,000. Finally, you will receive a lump sum payment of $250,000 at the completion of the contract. How much is contract worth in today's money if the applicable discount rate is 7.5%, compounded quarterly? (15 pts) 3. You are concerned about your retirement portfolio and want to start planning. You figure you will retire in exactly 42 years from today and then live another 30 years after. During retirement, you want to be able to take out $8,000 per month for the entire 30 years. Today, you plan to invest $300 each month in the retirement account. You plan invest at this level for the next 20 years. How much will you have to invest in your retirement account each month for those remaining 22 years to have enough proceeds to reach your retirement goals? You may assume the applicable rate is 7% APR, compounded monthly. (15 pts)