Payment option 1: A $600 payment is due to be received in 8 years. Payment option 2: The alternative is to receive $100 now, $200 in 5 years and $Z in 10 years. If r = 8% with annual compounding, find Z such that the values of both payment options are equal using the following 3 approaches:

a. Compare the values at time t =0 (now). [2pts]

b. Compare the values at time t =5 years. [1.5pts]

c. Compare the values at time t =10 years. [1.5pts]