2. Your uncle died last year and left you money in his will. You are to receive $200,000 in three years (time 3) and $200,000 twenty years from today (i.e., in time 20).

(a) What is the value of the inheritance today (in time 0) if the appropriate discount rate is 5% and you compound 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 5% each year?

3. Your neighbor is buying a new recreational vehicle (RV). He has the following options to finance the RV:

I. Pays $53,000 today (in time 0)

II. Buy under a "three annual payment program" where you make annual payments of $20,000 (in time 1, 2 and 3).

III. Make 84 monthly payments over 7 years of $800 payable at the end of each month.

(a) If the interest rate is 7% annually, calculate the present value of each option.

(b) At what interest rate do Option II and Option III have the same present value?

4. (a) If you will be making equal deposits into a retirement account for 20 years (with each payment at the end of the year), how much must you deposit each year if the account earns 5% compounded annually and you wish the account to grow to $1,000,000 after 40 years (in time 40)?

(b) How does your answer change if the account pays interest compounded monthly at an annual rate of 5%? Note: use monthly compounding for all calculations.

5. (a) You belong to an unusual pension plan because your retirement payments will continue forever (and will go to your descendants after you die). If you will receive $60,000 per year at the end of each year starting 40 years from now (i.e., the first payment is in time 40), what is the present value of your retirement plan if the discount rate is 4%?

(b) How does your answer change if you receive $5,000 per month every month forever (in perpetuity) starting 40 years from today (in monthly time period 480) and you compound monthly?

I want the answers for the above questions in details and want some who have enough knowledge about finance.