3. You and your brother Bill play the lottery each week. After 5 years of playing you finally won a prize. The Ontario Lottery commission has given you two options. Option 1 is for you to take a lump sum payment of $1,000, Option 2 will pay you $1,750 at the end of 5 years. Using a discount rate of 5%, which would you choose? Using the same discount rate of 5%, based on future values, which would you choose? Which option is more advantageous purely based on the concept of the time value of money? 1. You have a twin brother named Bill. You share the same birthday of January 1, 2000. When you turned 19, you decide to invest $4,000 and earn 7% compound interest. You try to convince your brother Bill to do the same. He rejects your idea and plans to invest $10,000 when he turns 40 and will also earn 7% compound interest. Bill believes that he will have more money than you when you both turn 90 on January 1, 2090. Explain to Bill that no matter how long you both shall live he will never have as much money as you. Explain why