Jim has three investment options. The first one will offer only one dividend of $1300 at the end of 3rd year. The second one will offer 250 at the end of each year for the next five years. The last one will offer the following dividends over the next five years: $500 at the end of 1st year, $200 at the end of 2nd year, $300 at the end of 3rd year, $100 at the end of 4th year, $200 at the end of 5th year. For any investment, Jim expects an annual rate of return of 5%.

(a) What is FV for each option? FV refers to the value at the end of 5th year.

(b)Based on your answers of (a), which option should he choose?