3. Mark has two options for receiving the following benefits: 1) A 20-year annuity with the series of semi-annual payments is considered. The first payment is made at the end of the half year with $1,500. The subsequent payments increase by $200. 2) A lump-sum payment will be received at the end of 20 year. Those two options are subject to a nominal interest rate of 7% compounded semi- annually. And the present values of two options are same. (a) [4 points) Calculate the present value of the first option. (b) [2 points] On the option 2, calculate the amount of lump-sum payment made in 20 years