Please show the steps and explain the reasons. Thanks.

A8. The market interest rate is 5% and is expected to stay at that level. Consumers can lend all they want at this rate. Explain your choice for these situations: (a) Would you prefer a $500 gift today or a $540 gift next year? (b) Would you prefer a $100 gift now or a $500 loan without interest for four years? (c) You want to buy an $8000 car. Would you prefer a $350 discount or a full year off (at 0% interest) before you have to pay for the car