(a) The company that you have been working for the last 15 years, offers to pay you a lump sum of $200,000 on your 65^th birthday OR a fixed amount at the end of each year for 15 years after your 65^th birthday. If you could assume that the rate of return to be 8% for all these times, what amount in the second option will make you indifferent between these choices?

(b) Assume youre 30 years old and have $10,000 that earns 10% compounded monthly. Also assume that you plan to contribute $1200 in a pension plan at the end of each year until your retirement at age 65. Your employer will match your contribution to this plan. This plan has a historic rate of return of 8%. How much money will you have in your possession at the time of your retirement?