a. Assume you are currently aged twenty (20) and your parents inform you that they are planning to give you $100,000 on your 30th birthday (10 years from now). If the relevant discount rate is 5%, how much is your gift worth today? Provide complete calculations in your answer.

b. Assume you have $20,000 in your bank account. After five (5) years, you are intending to have $35,000 in your account. What annual rate of return must you earn on your investment to achieve your target? Provide complete calculations in your answer.