(b) Calculate the present value of an annuity of $3,900 each year for four years, assuming an opportunity cost of 10 percent. (4 marks) (c) Mr. Jackson has been awarded a bonus for his outstanding work. His employer offers him a choice of a lump-sum of $5,000 today, or an annuity of $1,250 a year for the next five years. Which option should Mr. Jackson choose if his opportunity cost is 9 percent? (6 marks) (d) During her four years at college. Hayley received the following amounts of money at the end of each year from her grandmother. She deposited her money in a savings account paying 6 percent rate of interest. How much money will Hayley have on graduation day? Year $ 1 100 2 200 3 300 4 400 754