Please answer by 10/21 9PM

A)

Dana's parents, in a moment of unbounded joy at the graduation ceremony, offered her the following options:

1.$25,000 cash today

2.$48,000 ten years from today

3.$3,500 per year, beginning today, for ten years

Assume an interest rate of 4%.

Dana should choose which option? You need to show calculations for each option. Do a comparison of future and present values.

B)

The Really Useful Company needs new equipment. The vendor has offered to lease the equipment for five years with quarterly payments of $2,200 with the first payment due at the time of the signing of the lease, or sell the equipment for $35,000. The Company in its analysis assumes an interest rate of 6% and no value for the equipment at the end of five years. Which alternative is better?

C)

Peachtree Doors borrowed $50,000 to finance a machine. The repayment terms called for three equal annual payments beginning one year from the date of the loan. The interest rate was 6%. Prepare an amortization schedule showing: total payment, interest, and principal.